Shantae is a character who would only transform for certain moves rather than having entirely different movesets for her forms, if we're being honest Shantae didn't really have a chance to make it into 4, the period between Smash 4 and Ultimate was Shantae's peak as a franchise which is why she was such a heavy hitter during the ballot days, it's Ultimate or bust baybeeee.
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FE didn't deserve more after three and here we are at 7, I don't have an issue with another villain rep. It'd be cool if Medusa was an Echo who used the rest of Palutena's scraped custom moves, that's more than enough reason to have her in the game.
Even if she doesn't know Steve's status, if he were in the game chances are they'd have to pull a Wayforward and ignore any and every single question about Minecraft and Smash Bros.
If we're using Yacht Club and Wayforward as a base, NDAs are company wide, no one can talk about it, especially not a big PR figurehead like the community leader. This kills Steve ded, that being said there's still a chance for Minecraft showing up in Smash in some capacity, but I also wouldn't hold my breath since I'd imagine the NDA applies to your franchise getting any sort of representations (as evidenced by YC where SK is only an Assist) so this might also kill Verge too.