http://web.archive.org/web/20120229181006/http://andriasang.com/comw97/iwata_asks_smash_bros/
Making a portable version had its appeal for him, as they'd be able to do a number of new things. At the same time, there would be limits, as they'd be handicapped in some areas when it comes to offering the usual enjoyment areas of Smash Bros.
Specifically, Sakurai feels that a portable system makes the game a more "individual" experience in that, compared to a console, it's easier to make players attached to the data that they've built up and collected. The fact that you're carrying the hardware with you makes for a more personal experience.
The difficulty here is that the current Smash Bros. games haven't relied on rewards, collecting money or raising your character's level. There's no element of gaining experience to make your character stronger, Iwata noted.
Adding the notion of experience would pose a dilmena, explained Sakurai, as there are some players who would get into such a game, while others would not like it. Iwata added that placing a focus on experience would also make the game lose its instant play quality.
What Sakurai hopes to do is have the 3DS version of Smash Bros. allow players to build up their character through battle and rewards, then take their custom character to the Wii U version to face off against everyone. He feels it could be nice if they can make the "personal" portable space and the stadium-like "public" console space mesh together.
Iwata summed it the basic idea nicely: players would spend time on the 3DS version, building up their character and collecting stuff, then show off their skills on the Wii U version.
The way it sounds to me it seems SSB4 will be similar to the relationship of Poke'mon R/B/Y & Poke'mon Stadium or of Mario Tennis/Golf on GBC/N64. The console has "stock" versions of characters, with pre-set skills & attributes. In contrast the handheld version of the same character can level up & improve his attributes or learn new skills.
For how I see this working out in SSB4 mechincally let's use Mario as as example. Say stock Mario has Mario Tornado as his down B special. On 3DS Mario starts with the tornado but when he reaches level 5 he learns FLUDD which can replace it. The player now has a choice in which of the 2 d-B moves to keep since both MT & FLUDD have different purposes (assuming FLUDD is actually made viable this time of course). Later on Mario learns Iceball, less damaging than Fireball but can slow an opponent momentarily. Or Wing Cap, which has greater recovery than Super Jump Punch but deals no damage.
At max level, 3DS Mario would have learn about a dozen specials but can still only have 4 in battle, thus the player must decide on a "moveset loadout" to go with. This means each player has his/her own personal customized Mario. If 2 players face off in an online match & both choose to play Mario, it wouldn't be a mirror match because of their different builds. Perhaps Player 1 went with an aggressive offense-based build (fireball, tornado, jump punch) whilst Player 2 opted for a more defensive loadout (iceball, FLUDD, Wing Cap). Forums such as Smashboards would debate what kind of build is the optimal for Mario, analyzing the advantages, disadvantages, & alternate strategies each possible build provides.
Now imagine this happening for EVERY character in the game: Link choosing between bombs or bombchus, speedy normal arrows or powerful fire arrows. Pit having access to many of the weapons from KIU, Samus having the different beams of the Metroid series (Wave can hit multiple players by passing through one to another, Imperialist as a sniper weapon), Yoshi finally using his tongue as a recovery instead of tossing eggs, Kirby would have more of the special powers of his series or maybe summoning of helpers as part of his new moves. Fox playing the same as before or having a SF Adventures based set. Players giving clone characters & the originals different loadouts just for the sake of differentiating them. The whole game changes significantly before even getting to the subject of newcomers, the veterans become just as exciting to discuss because of the new ways they can be played.
& then there's the very possible return of passive stats. Remember how you could augment characters with different bonuses in the story mode but it didn't apply to multiplayer? Yeah, I see that changing in the next game. Hell Sakurai already made them matter to multiplayer in Kid Icarus Uprising:
Players can & have spent a lot of time farming for stronger weapons just to get an edge in that game's multiplayer. Depending on how it's implemented in SSB4 (they may not use stickers again) players may spend a lot of time customizing particular characters with particular bonuses, Bowser with speed boosts, Mewtwo with knockback resists or Pichu with electric resistance for example.
Sakurai interview again said:
Closing off the little section offering vague hints about the new Smash Bros. games, Sakurai said that his aim with the 3DS version is to offer players a slightly different experience from conventional Smash Bros. games. He believes that there is merit in having skilled and unskilled players play together, so one emphasis will be on elements of players helping one-another.
Customize-able movesets & passive stats could 2 ways that Sakurai hopes to narrow the gap between the skilled & unskilled, a lesser skilled player could invest his time in grinding/farming instead of practicing. Of course the skilled could still do that as well but it's a theory.
"But what if I don't want any of that? & where does the Wii U version fit into this?"
That's the beauty of it all. Players who wish to stick to "classic" SSB can just stick to the Wii U version & ignore all that leveling nonsense. Same core game, more characters, better graphics, everything the fanbase pretty much wants. However players who own both copies can upload their custom crew to the Wii U & use them in both local & online matches. Meaning that Wii U-only owners are pretty much screwed if they try to compete online, which is basically the incentive for "encouraging" more people to double-dip & give Nintendo more money.