The gripe is that it all caters to the same type of character. This is referenced in the video I linked. More variety in a starter list gives the opportunity for a more-fair 1st stage. BTW, Dreamland has a super low ceiling.
I'm looking at your Skyloft paragraph and I'm seeing the same thing I have heard from others; not a lot of sense. "the stage hurts players" is anecdotal as all stages add to or hinder a character. Duck hunt is amazing for MK because he can uthrow near the left side of the stage and get early kills. Halberd is good for characters that want to kill off the top (mentioned in this thread in the above posts). Smashville's ballon can actually kill Ness if it spawns when he is trying to up B.
The island does become a hitbox at certain times throughout the stage, but I do not see how this is any different than Halberd's laser or canon. It's very telegraphed as you can see when it's coming. Furthermore, you can actually tech the island.
The only instance I know of people going through the stage architecture is the following video
https://youtu.be/Owipzt9jPsY?t=16m46s . As you can see, the MK purposely went off the right side of the ledge before the transformation was complete. He was able to make it back to the ledge with no problem.
Lastly, the stage does not promote camping any more than any other stage as the transformations only last 10 seconds each. If a section is unfavorable for your character it's easy to just wait for the moving platform.
I'm still having trouble seeing why Skyloft is banned in most places but people seem to think Delfino is fine. Delfino actually adds water to the competitive scene- that's an entirely different mechanic than what you would use on any other stage (including Skyloft if it were legal). Delfino has "campy transformations" just like Skyloft, except Delfino also has super low ceilings during some of its transformations (Skyloft does not). Delfino has all of the same ingredients that Skyloft has and more, but for some reason Delfino is on and Skyloft is off. It just doesn't make sense to me. I was wondering if there was some kind of super glitch on Skyloft or something that made the stage bad for competitive play, but so far all I've heard is "it's weird, trust me" (Illuminoise is not the first person to defend their stance with calling the stage weird).
I'm cool with banning stages that are bad for competition, I just haven't seen any evidence thusfar to ban Skyloft. Especially when compared with other legal stages such as Delfino.