After giving it some time to ruminate, theses are my honest thoughts. If you disagree, good for you. Variety is the spice of life and in opinions this is no exception. Likewise, if you think I'm misunderstanding something, feel free to have a respectful reply. That being said...
I thought that direct was bad. In a Grinchless vacuum, I find it hard to consider that a fitting end to this speculation cycle.
Pros
Ken - You can really feel the love coming off Sakurai's inclusion in Ken. The fire shoryuken, the special focus attack, the general personality, everything about Ken feels so right. Even as someone who doesn't really play Ryu, I'm very much looking forward to picking up Ken.
That Cutscene - Holy moly Ravioli, that ending cutscene was incredible! Getting to see all those characters working together in a high quality, fully voiced cutscence where everyone is in character and the stakes are higher than they've ever been feels like the Subspace we should've gotten. I don't think anyone would disagree it was awesome, plain and simple
Bosses - It was really cool to see Galleom return and It's clear to see they're going all in on bosses in Spirits mode.
Cons
Incineroar - I suppose I should start off with the con that will get me the most flack, I think Incineroar is lame. Full disclosure, I was a adamant Lycanroc guy throughout this whole speculation period (and I still think he has a fighting chance with an Alola stage in the DLC). However, I had warmed up to Incineroar, mainly through dialogue with his supporters. My biggest fear with Incineroar is his wrestling gimmick would hit the same notes that characters like Bowser already do: a big, slow heavy with super armour, a strong punish game, and good grabs with a supporting command grab. However, hearing some of the ideas of Incineroar as a grappler did give me some hope, how bad could he be? Problem is, it feels like my fear has come true. His presentation is top notch, I'll give you that, but the underlying mechanics and gameplay feels about as generic as it comes. Darkiest Lariat looks some much like DK's grounded cyclone it's not funny, his command grab has a pseudo-rhythm mechanic but it doesn't really differentiate him much for other command grabs, and I'm certain Sakurai could've done something better for Revenge than yet another counter (how about it's a move that plays on rage? The higher percent, more power. Not the most unique idea, I know, but it's more unique than what's currently in place). Even his basic movements feel very similar to Bowser and K. Rool, unrefined blows of power using the whole body. Overall, Incineroar is a lot like a expensive socks, they're very nice to look at and there's a current novelty to them at points, but there's nothing that practically seperates them from the rest of the drawer.
Spirits Mode - A lot of what I said about Incineroar kinda applies here, a lot of style with no substance. The fundamental gameplay of Spirits just feels like Stickers Mode meets Events. While I do appreciate the sheer number of scenarios that have appear to have gone into this mode, the skeptic in me feels like it will get old fast, playing like a series of short battles between the bosses, which I think will be the reason I'll keep playing. I suppose the customizability of the spirits will be neat, but I don't know how impactful Spirits will actually be in the battle to battle gameplay. I imagine most players will simply have 3 main spirits you train (one for attack, defence, and grab) with the rest being collectable fodder. At least getting unique maps to explore is cool.
No Trophies - This complaint is largely a "me" thing. Even as a kid, I loved collecting trophies. I loved to check out the full 3D models, read their descriptions, and gain a feeling of what the game they were from is like. It was the same sort of appeal you'd get going to a museum, getting to see and experience history in a personal way. I'm not getting this vibe from Spirits. Spirits kinda lack the "soul" (for lack of a better term) that trophies had, which is ironic seeing how they're supposed to be the souls of these characters. It also kinda sucks to see such an iconic piece of iconography leave the Smash series.
Online - In a game that's as customizable as Smash, going from the For Glory/For Fun designations to a host's preference system feels like a major step back. I know the system is designed to match up players with similar preferences, but casual and competitive play are so night and day that they often feel like different games. Smash 4's online had a lot of problems, but you generally knew what you were getting into when you selected a mode. Now, it feels a lot more like a crapshoot whether or not you'll be playing the game mode you wanted to. Likewise, would it be too much to ask for dedicated servers in a major first-party release where precise movements are the difference between success and loss, especially when we're paying a $20 access fee?
Deconfirmations - This is where I'm going to start addressing the way marketing was done and the way the direct itself was handled instead of the content in the direct. Some may say this is stupid to critique this, as it has no real barring on the final content, but it also effects the general reactions people have to the content so I feel it's worth talking about. They should've deconfirmed Shadow and Issac in the August Direct or using blog updates, leaving people to speculate on them for this long was a pretty poor decision. Obviously, Grinch leak (which they obviously can't plan for) had some impact on this, but the fact they left people wondering for this long slanted perceptions in a bad way. This is especially true for Shadow, as much of his supporters came from the fact we hadn't seen him yet. Also, deconfirming Geno and Skull Kid, in a blink-and-you'll-miss-it icon under Shulk and being added to the website without any fanfare feels like a huge kick in the teeth to two of the most requested characters.
Options and How to Play - This whole section felt like padding. We really didn't need 5 minutes to explain concepts like "hints is returning from Wii U/3DS" and "you can change the language" (which has been a thing since Melee?). If brevity is the soul of wit, this section was the definition of shortsightedness. Likewise, I'm not sure how I feel about the whole "you can buff and nerf the roster thing". There's a very obvious solution to this concer (i.e. don't use it), but it feels like this will simply cause more arguments than it will solve, namely in casual play where fights will break inevitably break out over whether or not is fair to nerf the "cheap" characters.
DLC and Amiibos - Going into the direct, I had zero doubt that we would get some extra info on the way DLC would be done, given Mewtwo's annoucement at the 50 fact extravaganza. However, it didn't expect it to feel as much like a commercial as it did. Trying to sell us a Season Pass without any knowledge of what exactly we're getting feels scummy, plain and simple. Even a little guidance beyond, "you're getting characters, stages, and music" would've been nice. Something like "we'll be listening to fan demand for the DLC characters" or "We're hoping these characters will surprise you" would at least set some expectations as to what we would be buying. Likewise, Amiibos felt very commercial. It was cool to see them, but you couldn't have elaborated on what they actually did or any changes between Smash 4?
Piranha Plant - Sakurai, I love you man. Your weird ideas are what makes Smash into a truly unique game and gives it such a strong identity. That being said, I don't get it. I know Piranha Plant is this game's surprise character, but he's just a generic enemy. He's not even the most iconic common enemy, Goomba and Koopa are way more recognizable than him. I'm sure I'll warm up to him eventually, but right now I'm just not feeling it. He feels like a step down after the hype machine that was Mewtwo's announcement.
Insiders - This is less about the direct itself and more about the environment surrounding it. In particular, the attitude many insiders had towards those who did not believe that Incineroar and Ken would be our final newcomers. Specifically, Andre from Gamexplain and Liam Robertson throwing politically charged insults at those who were skeptical under the guise of "addressing toxicity". Ad hominems doesn't set good examples on how to act in speculation, it does the opposite by establishing that these sort of actions are the standard for the community. For people that are supposed to be ambassadors of the Smash Community, you're doing a piss poor job by starting stupid fights out of your own egos. Grow up.
Overall, if I had to rate the direct, I would give it a 3/10. For every step forward, there were at least 2 steps back. I'm still going to get Smash Ultimate on the day it comes out, but that speaks more to the fantastic E3 and 8/8 presentations than anything that went on today. Obviously, we're not owed anything from Sakurai, Sora Ltd., Nintendo, and Namco Bandai. That being said, it is still worth being critical as a consumer, even if it goes against the status quo. Smash Bros would not be half the game it was today if it wasn't for fan feedback. It is important to clap when pleased, and to boo when displeased.