Regaining Stage Control/How I Solve Problems
Good question! I'm going to answer this using the method I would use to answer it if I asked myself so that people can use this methodology if they want to solve other problems without having to ask me. =)
When you're limited, you must understand why you are limited. Understanding the situation in its entirety is the first step in analyzing a problem and correcting it. In this case, you are limited by having a small amount of stage to move around on, and your opponent has a great amount of space to move around on.
Knowing why each explanation you may come up with is relevant to the problem is a good way to check whether your ideas may be more correct or incorrect than the others. For example, if you also decided that having less space was bad because you couldn't wall someone out with Bairs and Uptilts as easily, then you would have to figure out whether this is a better explanation than having less room to move. The answer is pretty obvious in this case that having less room to move is the better answer and even explains the first theory in this case for simplicity's sake, but I'm just making a demonstration of how this thought process could work.
Anyway, saying that you have less room to move around the stage, and movement is important in Melee are the ways you can express how this answer is related to the problem.
Then you have to think about your answer you just gave. Why is movement important in Melee? What can you do with more movement options? Well, movement allows one to feint or hide their intentions, while still threatening with long-ranged or quick attacks at any time. Having less movement options means you will be more predictable since you have less room to create an elaborate feint. Generally, having less movement options also means you are confined spatially, which just means you are stuck in a smaller area(platforms count here too kinda). Being confined spatially is bad because you lose zoning, or space controlling potential. I'm sort of combining the two issues here, but movement is sometimes a bigger deal than zoning in Melee, so this is shortest way I can way write about the problem being confined presents.
Once you know the problems associated with a bad situation and why they are bad, you can begin to analyze these problems and/or solve them as well as possible. When having less movement options, I already said you would be concerned about remaining unpredictable. So, this means you must know and abuse every single movement option you have in order to be unpredictable and not killed here. Economic DDs(not excessive movement, but enough to feign an approach and varies widely in speed), very precise WDs, FHs(if you're Falco in this case, which you are) and maybe SHs/DJs if you really like jump tricks are all good ways to use movement. Being fully conscious of them as Falco involves knowing if your opponent is in range to stuff a SHL on reaction or just wants to punish you for moving at all. Sometimes, doing nothing may be better than moving because you don't have many options anyway and you get to observe what your opponent is trying to do to you. Jumping allows Falco to move through the air well, especially if you don't FF, so I urge you to also keep that option in mind.
As for being confined spatially, I'll have to overlap the answers a little. As you cannot zone too well in a locked up position, you must either decide on whether you want to play the opponent or focus on simply taking the stage back. If you want to play the opponent, then either work movement techniques that will make the opponent move forward and you can hit them/Bthrow reverse the situation on them, or cause them to be unsure of whether you will attack or not and fall back. If you want to focus on taking stage back, then common answers for Falco can be found in movement to seem as though you will attack, running/WD'ing up and jumping or shielding or attacking(usually a crossup, but could also be a zoning move like Bair/uptilt/ftilt) to quickly take stage. Notice that you are not limited to even just offense or defense here, but also a position of baiting and waiting as long as you remain unpredictable with your fewer options. As your opponent adjusts to 1-2 options, then feign those and/or switch to others.
Keep in mind here that I have not yet mentioned lasers outside of the opponent looking to punish them, and that is because Falco PLAYERS can become heavily reliant on the option and limit themselves when they have other, usually better choices in this situation. Laser is great when your opponent thinks you will do something else is the best way I'd describe them in this situation.
If you wanted to be really effective in your analysis, you could go on to examine each option individually, why it works, what opponents/characters it would work against, and which mixup options work best with each other option. I am tired and have put off being productive for too long now, so I'm not going to do that here.
.......oh, I just noticed you also struggle with someone getting in your face as Falco. Shield DI(still very underused but amazing), WD'ing OOS, rolling at different times, and shine OOS(it's still invincible and wins out in trades usually) are among your better options here.
Anyway, that's how I solve problems usually. If you have any questions or comments or criticisms, then lemme know because I'm always looking to improve/share my ideas. =)
