Yes, because it will THIS infinite that will cause the demise of Brawl in the competitive community. Dedede's capability to infinite a few characters was almost completely ignored. The IC's ability to do it to the WHOLE CAST in a VARIETY OF WAYS has been ignored (with the exception of Texas).
Infinites do not break games. They just break characters. And even then, Ness and Lucas are only screwed with you choose the right characters. Thats a handful in a possible 37*37= 1369 matchups. If Brawl is doomed to fail competitively, its not because of a few screwed matchups.
Against good players, that understand the nature of this CG, pulling it off will be harder. The match is still intense for both players because its coming down to landing that grab. You can't be obvious about trying to grab, or you won't land it. You'll just keep getting pummeled in the face for trying. If I'm facing a newbie Ness that can't avoid grabs well, I would rather end the match quickly anyway, because I wasn't likely going to have a fun time anyway.
That said, everyone who complains about the "boring" and "dishonourable" aspects of this CG need to also need to realize that this is competition, where we throw lots of money on the line, and we'd like to get some of that money back. A few boring, but guaranteed matches during a tournament are not an issue when I've BET a significant amount of money!!! And that's assuming I meet Ness during a tournament, which wasn't often BEFORE the CG was discovered.
I wouldn't be surprised if Backlash hasn't attended a tournament of 50+ where the first place prize was worth 500 or more. Even if he has, he probably doesn't place high at all. >.>