WOW, i read this... GREAT JOB! i loved this info and i was very interested in it and so far i have not noticed anything that could be used to majorly disprove this.
also, like when u said that they could just zoom the Char Select Screen out if u unlock more chars, i totally agree with that because: there were 2 pics of Char Select Screens u used in the Conspiracy Theoracy which are the ones near the beginning of the Theory, one with the "seeking" and one with out the "seeking". the second pic that did not say "seeking" was used in the Demos at E4A or E3 or w/e anyways, that Char Select Screen was zoomed out, which supports the idea that the screen will be zoomed out as more Chars r unlocked. and the first pic (idk if u already said this or not) was the Char Select Screen of a new save file, or at least a file without any unlocked chars, because the screen was not zoomed out, it was zoomed in instead, and its probably not a modified pic cus like u said, it said things like:Item, Stage, 40 seconds, Seeking - which told that it was a Online Brawl. If the pic was not from a save file that didnt unlock any chars yet, then it probably would have been zoomed out (may be showing other chars too)