Well, last time I debated about wobbling was years ago when it was first being used. At the time, the primary argument being made was that wobbling was broken. I guess now that that argument is known to be false, anti-wobblers have picked up other arguments?
The reasoning that it should be banned due to lack of player interaction is suspect, IMO. Wobbling can be escaped below 30ish% (can't remember exactly). After that it should be considered a kill move, not really any different than Jigglypuff's rest. The only difference is the other player might have to sit there for 20 seconds before he gets killed, with wobbling. Considering how few people play ICs (3%), and that some of those ICs won't wobble, noobs should not encounter wobbling enough to make them want to quit. And if they want to quit after getting wobbled, are these players really enriching the community?
I disagree about wobbling dominating low-level play. I'm not sure exactly what you mean by low-level play, but I'm assuming you mean the level of your average local tournament goer? Undoubtedly a top ICs player could 4-stock many randoms with wobbling, but top players can do this with a lot of characters. With similarly skilled players, I don't think wobbling is that dominant. My ICs aren't as good as my Fox, even with wobbling, and I understand how to play them at least moderately well. Of course such evidence is anecdotal, but so is the idea that wobbling dominates at low-level play. Or has this been systematically tested? If true, it would suggest that ICs should dominate at small tournaments and/or scrub tournaments.