What happened to Hugs? Hugs retired. He still got to WQFs and LQFs and whatever deep into his career but eventually he stopped playing entirely. That's all there is to it. Citing Hugs is really stupid of you, though. Samus has actually been performing pretty well in strong regions like FL, but some of these players (Plup) simply don't travel. Duck recently got top 8 at a MI tournament with S2J, Lovage, the finest MW players, and most of EC Canada's top players (Raynex, myself, Unknown522, weon-x). How's that for "fading into obscurity"?
Moreover, I'd think Axe, Armada, and Hungrybox's tournament placings would be good enough to demonstrate that other characters can compete in this metagame (and win!). Some of these characters are still relatively new to "competitive character" status, so I find it hard to believe they're becoming obsolete already. Peach is still pulling strong placements, and it's not just from Armada all the time. VaNz has had some really strong showings in his last few tournaments.
I mean, if you want to march up to Armada and tell him he's wasting his time on Peach because Peach can't compete and there's not enough development on her to allow her to keep up with the metagame you can do so. But you're probably just gonna get laughed at because that stance is absolutely ridiculous. Same for Hungrybox, etc.
tl;dr you're ********.