3. The stage thing doesn't really make much sense. Toon Link is a different Link.
The "different Link" argument doesn't hold water for this reason:
There is only one "Link" in Smash canon.
You heard me; in Brawl, Link and Toon Link are the same being despite being different Links from TP and WW.
Smash Bros. DOJO!! said:
It’s Link’s other incarnation—Toon Link. He has a slightly comical expression and big, catlike eyes.
Toon Link's trophy said:
Link as he appeared in The Wind Waker and Phantom Hourglass, with big eyes and an expressive face. He lived peacefully on Outset Island until a bird captured his little sister, and he came to her rescue. In The Wind Waker, he had to crawl, press up to walls, and the like. His green clothes were worn on his 12th birthday and are the lucky outfit of the hero of legend.
This has me realize that
this is probably why Toon Link was deliberately designed as a clone, was a low-priority character, didn't appear in the SSE, why there is any notion of "Toon Sheik" in Brawl's data, and why TP Zelda can even use OoT spells and become Sheik.
To Sakurai, all the Links and Zeldas are the same.
With the Stickers labeling each individual Link and Zelda as simply "Link" or "Zelda" (
including stickers of the Toon Link and Toon Zelda), the fact regular Link and Zelda are stated to be from The Legend of Zelda rather than The Legend of Zelda: Twilight Princess, the fact that the trophies for the Wind Waker versions of Zelda and Ganondorf are not "Toon Zelda" or "Toon Ganondorf", but "Zelda (Wind Waker)", and Ganondorf (Wind Waker)", and Link's and Zelda's trophies refer to them as recurring individuals rather than a specific Link or Zelda, this supports this idea.
Now, does this mean Toon Link is gone? That remains to be seen.
However, the "different Link" argument doesn't hold; in Smash, the ST Link from the stage and Toon Link are the same person. And they are also the same person as the
other playable Link that we just know as "Link".
With that knowledge, neither side can really claim one way or the other what Toon Link's fate is.
The stage isn't necessarily a disconfirmation since that Link's not wearing the traditional green tunic, meaning Toon Link could still show up as a character in green tunic.
At the same time, it
could be a disconfirmation as the stage could just as easily be a method for Sakurai to retire the chibi-styled Link from the role of a playable character while still keeping it around somehow.
But we don't really know, and we won't until sometime next year.