When you spend soo much time in an echo chamber, everything seems more likely than it is.
The Smash community has a terrible, terrible habit or regurgitating the same ten or so characters over and over again, and anything outside of those are deemed 'not likely' by the fanbase at large.
Like, I still see people say, "Would Sakurai really go to Microsoft for Minecraft Steve of all things over Banjo?" or that "X character has no ties to Nintendo so they can't be in."
As much as I love Banjo for instance, I'm also not going to throw someone like Steve under the bus just because the community as a whole wants him more.
To piggyback off of this, I think Steve is ironically a character that the echo chamber thinks is a lock, simply because it’s a legacy character they identify with.
Minecraft being a big name series does not change the fact that it’s owned by Microsoft. Yes, Microsoft or at least Phil Spencer has seemed “buddy buddy” with Nintendo, but it’s PR talk. No matter what anyone says, Microsoft is a competing company, not similar to companies like Konami or Capcom who are not hardware makers.
Could Steve happen? Absolutely. The main reason he’s in discussions is because he was suggested by a leaker, and is still showing up in rumors. He’s, for whatever reason, still considered likely despite backtracking and contradictions from other sources.
Again, he could get in, and the only thing that would stand out is his...hideous design. Otherwise he could fit. I simply think people overestimate him substantially, and then underrate series that have effectively paved the way for other genres of gaming, and not to beat a dead horse, but like Resident Evil.
Capcom series, like Monster Hunter, Ace Attorney, Devil May Cry, and Resident Evil are at times considered off the table by some because we have “3 Capcom reps”. This is where we get into “speculah” territory, because it’s a made up term and made up rule that a legacy series like any of those couldn’t get in because “Capcom has too much”.
Sure, Smash isn’t Nintendo vs. Capcom, but it’s shaping itself up to be a game where the biggest and greatest landmark gaming series come together, show off how unique they are, and mash some never before seen crossovers together.
There’s also the fact that many ignore the fact that negotiations could be far easier for companies in Japan, which is where every single 3rd party has come from. It’s not impossible for a Western 3rd party to get in, but I think it’s only based on comments by Bethesda and Microsoft being Microsoft.
Now that I think about it, and I realize this is turning into a wall of text, I think this is enough for me to call the rumors bs now. The only two characters that have been specifically publicly acknowledged outside of rumors and leaks were a Bethesda pick (because of the Smash comment) and then the Steve blowup with Verg and Hitagi. They’re not entirely original rumors.
Eh, my comment spitballed. Sorry if I got off track, but basically you’re right about the echo chamber.