I don't really get why people think that needles need such huge nerfs. Needles already have a lot of end lag and very minimal shield stun. There's 28 frames between when she throws her last needle (with a full set of needles) and can act again. Spamming single needles or a few needles is not efficient at all because throwing single needles isn't that useful until they send them into tumble, which isn't generally until ~110%, and there's more lag. Needles take time to recharge and have a pretty free punish unless you're like half a stage away. You can even punish on hit at lower percents. Needle zoning is good and can be oppressive, but it's not some impenetrable thing. It wouldn't mind for needles to get 2-3 frames more end lag so that people shut up about them, but needles already do have a significant amount of end lag. So much so that you can throw certain projectiles and hit her for throwing needles at you, which tends to be a biased trade because needles don't even do that much damage.
Part of the counterplay for needles is that you have to realize that you can bait needles. You can jump, you can read them and use a reflector (if you have one), you can crouch if you have a low crouch, you can shield, and you can spot dodge on a read/expectation. Sheik can obviously read or otherwise counterplay those options, but you have to make it clear to the Sheik that you are going to trick them up and make landing needles harder, which in turn makes needles less of a threat. If you show that you understand your options to avoid getting hit by needles, I have to respect them and be smarter with my needle tosses. Furthermore, you should not be scared of needles at low percent until she has a full set. You can keep moving and even punish them on hit depending on how close you are. Until you're above like 100%, Sheik throwing low amounts of needles should not scare you that much anyways. If you have certain projectiles, you can even beat out or get a favorable trade against needles. If you have a chargeable projectile, use platforms to help you charge it or get out of needles range. Something that happens to people is that they don't realize that Sheik can cancel her needle charge and then almost instantly transition into grabbing them or something, which people fall for all the time. You have to respect her options in this scenario and be prepared for them to land a punish or not get hit.
I don't really think that end lag is an appropriate nerf for needles. There's already quite a bit of end lag. I think that reducing KBG by 10 or 15 is a more appropriate nerf, which would give needles less knockback at higher percent and in turn send opponents into tumble later on as opposed to ~110%.
There's that and there's also this whole idea that Sheik wins every matchup in the game really hard, no one can compete with her, etc etc which is inaccurate and super scrubby. She doesn't win every matchup super hard and players can play a lot better against her. She goes even with characters like MK, Kirby, Pikachu, Lucario (prolly a -1 vs Lucario actually), G&W...and so many characters can do this matchup fine. Fox, Diddy Kong, Yoshi, Wario, ZSS, Villager, Toon Link, Sonic, Ryu, Rosalina, Mario, Marth, and Peach are working with like 55:45 losing matchups, some able to even push the matchup to even. DK (after the most recent patch) and Pit can also do this matchup. Mr ConCon is actually confident that he can learn Luigi vs Sheik and potentially do the matchup. He has wins vs players like K9 and VoiD, who are talented Sheik players. People are waaaaay to hyperbolic when they talk about Sheik.