Well, then it's up to the potentially disadvantageous player to approach BEFORE time happens. I repeat:
Not saying Sudden Death is an ideal solution in any way, but I completely disagree with your reasons for not wanting it.
Yeah, I agree that the disadvantageous player needs to approach before time is called, but that's only because it should be considered stalling if neither player approaches. The disadvantage should come from the fact that the player needs to approach someone who is tough to approach (stalling in that manner, for example) not from this random 300% sudden death match which may be an autowin for certain characters. Again, sudden death isn't an ideal way to settle it, for this very reason.
The problem with calling stalling for Chibo comes from the fact that the technique isn't limited or banned, and any effort to claim stalling could be argued that the Falco is doing the same thing. And it's a bit sketch to change tournament rules midtournament. Which technique are we particularly upset about: Chibo grabbing the ledge over and over again, or the fact that the Falco is spamming lasers on the stage and staying back? The obvious answer is the ledgestalling because of the advantage it creates (but that's another argument altogether), so then perhaps it should be limited in some way, hopefully in a way that doesn't change the metagame. For example, "In the case that excessive stalling happens in a match that ends in time (and tied percent), the ledgegrab rule can be called which states that the player with fewer ledgegrabs wins." Or something of the sort.
If you don't want the situation to arise because it gives "an unfair advantage" then avoid the situation during your match or consider a different character to begin with to cover the situation.
I'm arguing that this situation shouldn't arise in any case, so the character needn't try to avoid it by approaching in the actual match. The problem is inherently character-based as to why this situation is bad, but so is the match in the first place (hence why link wouldn't want to play a sheik.) The fact is, we don't want to change the metagame to decided who wins.
-.-
Edit: Let me make that a little more clear. I'm not saying saying sudden death is bad merely because some players have an advantage over others. Well duh, that's kind of the game we play. I apologize for not making this clear earlier. What I meant was that it gives certain characters
different advantages that don't exist in the metagame to begin with, and we want to avoid that as much as we can. Since sudden death is so drastic and changes the metagame too much, that's why I think it shouldn't be played. So i hope you agree with my points now, because hopefully it's a bit more clear =D