It does, but that's not the only good stage for him. Places like Smashville also work. I'm not sure what stages are good and bad for Sheik. :/ For Ness, his worst stages are Yoshi's Island and Lylat Cruise. If Skyworld was a legal or counterpick, I'd throw that in as well. Anyway, Ness isn't bad on a lot of stages, but there might be some stages Sheik can use against him for various purposes. For example, if Distant Planet was legal [I'm not sure if it is in other areas or not] then you could just try and grab release him off the side of the stage. Unless that grab release only works for other attacks and not grabs like Yoshi's. But if it does work like Yoshi's, you could counterpick a Ness counterpick, Delfino Plaza.