Let me tell you a fun story about Cloud and FFVII for me.
I tried to play FFVII. I was thrown into a battle with no options for a tutorial. I vastly disliked it. I also only knew mostly about the emo Cloud thing, and never really liked the character. I did like Sephiroth and Aerith quite a bit, but mostly due to their designs.
That means I should by all rights hate his inclusion in Smash, right?
No. I loved it. I felt he deserved it for what he brought to the rpg genre. I felt he was the perfect FF representative, as he was not just the most iconic, but most popular, and VII had the most impact at the time. FF1 was great, but DQ1 had a bigger impact by introducing the NES to full out rpg's. FF1 definitely improved on it, but in a different way. It didn't introduce much differences beyond party members at the time. The bigger change up was II with the new battle system, then it was gauge otherwise. The limits is the big new change VII brought to the table, while also creating the divide between Square and Nintendo. It had a huge impact with the game's release and what it helped inspire for ages to come. Of course, each FF did an amazing thing too, but I'd argue it has the most influence.