Yeah, well it isn't Nintendo making this game, it's Sakurai. And he speciffically stated that he would like to give series like the ones I mentioned more representation. Example: Zamus and Metaknight. Plus he loves the old NES titles. Example: Pit, and Balloon Fighter and Mach Rider were supposedly in the beta for Melee, check out the rumor mill thread. My point is that this game isn't about Mario or the LoZ franchises, it's about giving some characters a second chance and showing how great a franchise still is. In fact, Sakurai recommended that people play the old NES games and wants them to make a comeback in the future. With Pit's new evolution, I think we can expect more games of him, and Sakurai might even make them himself. After all, he does have a studio all to himself now and they won't limit themselves to just Brawl. But now I have gone extremely off topic now. I am not against Toad but I don't won't to hear about this popularity being the big issue of Brawl. Now that I am thinking of it, a direct quote of Sakurai is that popular characters don't get him too exicted so hah! I am right! Toad ftw regardless.
Edit: Directed to Aeris.