This is my ideal set of characters for a sequel that reboots the roster:
: I cut Daisy and Dr Mario because clones, and Bowser Jr because not that much important. Luigi gets a Luigi's Mansion moveset. I keept Rosalina due to her unique gimmick and to represent the other not-Peach Mario princesses/girls.
(Baby Bros.): I feel like this series needs a new rep, and the baby bros are the most iconic characters. Kamek would still have a role in the game anyway.
(Dixie Kong)
: Added Dixie Kong.
(Ganon)(Tingle): cut the clones and Sheik because not much important. Added Ganon and Tingle because they are iconic.
: cut Dark Samus because clone.
: as much as I want Adeleine, I think that in case of a reboot, better to stay with the iconic main trio and improve their moveset.
(Krystal): Cut Falco because clone. Krystal in because she was important in the Gamecube/DS era and she brings original gameplay.
(new gen rep/s): I pretty much cut everyone except for Pikachu and Mewtwo (because iconic). A new Pokèmon should be added though (1 or more). I cut Pokèmon Trainer because I think its concept is inconsistent: if you can play as a pokèmon without the trainer, why would you need the trainer for some of them? If anything, the trainer should be a fighter on his own, fighting on the stage without the Pokèmons, with a moveset based on what he/she can do in the games (but would it make sense without the Pokèmons?).
(Tom Nook)(K.K. Slider): Added 2 important characters for this very popular series
: I'm not a Fire Emblem expert, I selected those characters only due to their moveset and I cut the clones. Maybe keep the movesets and replace the characters with different more recent ones.
(a villain): Cut Dark Pit. A villain character should be added, probably Medusa because she appears in the original game.
(maybe Arms? or something else not out yet): Modern franchises: 1 rep. each.
(Lip): SNES era characters, 1 for each franchise (I cut Lucas because clone). I added Lip because why not. You can consider Wario a SNES era character or a modern character depending if you consider Super Mario Land 2/Warioland or just the Wario Ware series.
: NES era characters, 1 for each franchise.
(Nintendo Labo?): Hardware/Product mascottes. Mii is revamped and it's now based on the Wii- gamse, 3DS Mii Plaza and stuff like Miitopia/Tomodachi Life.
55/56 characters, no third parties, only characters who are important to Nintendo's history or who are very iconic for their unique moveset.
Compared to the about 70 characters we have so far, even if they are many, there are still a lot of cuts.
About 12/13 unique newcomers, but many old characters would require revamped movesets and updates, so it's still a lot of work.
I may still cut some of the less important characters if needed, such as Rosalina, Tingle, the Kid Icarus characters other than Pit, and the Animal Crossing characters other than Villager and probably more.