Well trying to justify it that is unique enough, I don't really see distinction to say that it is that different, and I know fans don't want much difference. 

(Also I can't tell some user are joking or not in their post.)

1. All stages are mash-up from 2 different games
2. Variety of characters from Kratos to Sly Cooper
3. Online component that most likely works
4. HD Visuals at 60 FPS
5. No health bar or life limit. The only way to win is to pump out your super moves which are 1-hit KOs.(Biggest Different between the 2 games IMO)
6. Potential for a long life with DLC and game updates.

All this alone makes the game different enough to make even a Smash Bros fan buy the game if they got a PS3.

wow the nintendo fanboys aren't taking this news easy at all i just went to youtube to watch some of the footage for this game and happen to look through the comments to find it is dominated by nintendo fanboys

http://www.youtube.com/watch?v=6hKrSRqv6e8&email=comment_reply_received&lc=S9RfVQgl1UMAJniMFTkFvaY6onBHgDy9UEFamhhuuRM&lch=email_reply&feature=email

i'm honestly beginning to wonder if the team making the game should start fearing for their lives

actually as disapointed as I am that it's in no way original it does look fun

think smash bros but with playstation characters

The bolded is the only real distinction. The other stuff is hardly note worthy considering they hardly effect gameplay except for maybe it having Sony characters, but obviously it's going to have Sony chracters, that's the whole point.

It does affect gameplay. In the God of War level, Hades attacks the players.
In the LBP level the pop up thing can create new platforms and erase them. One it turns in to the Buzz! level, it asks you a question and if you don't stand on the right platform you get stunned or something.

Everything I said is a real distinction. You can't deny that.

Smash Bros isn't HD, it has no DLC, online is broken and stages are limited to 1 franchsie.

Examiners impressions

Sony has finally unveiled its Smash Bros themed game that has been rumored for months.  The game is now calledPlayStation Battle All-Stars Royale.  This new title is completely  unnecessary, and Sony should have not put the game into production.  While the game might turn out to be fun, the consumers of Baltimore should question Sony as to why it is blatantly ripping off Nintendo.  

PlayStation Battle All-Stars Royal is nothing more than a cash grab at the casual market.  Sony does not need a game like this.  A lot of franchises associated with the PlayStation platform never made it to the big leagues.  Parappa the Rapper is just one title that did not become a staple franchise.  The casual crowd is not going to pick up Sony’sSmash Bros clone to play as Parappa.  Sweet Tooth might have been popular back in the PS1 days, but he is no longer well known by today’s mainstream crowd.  It is also doubtful that most people recognize where Fat Princess comes from.  Since the majority of consumers have no idea who Sony’s characters are, then this game will probably fall flat when it releases. 

Sony needs to stick to the foundation of what made PlayStation great in the first place.  The PlayStation brand has never been about parties or local multiplayer.  All of the biggest games on the platform have always focused on singleplayer gameplay.  Games like Spyro, Crash Bandicoot,Metal Gear Solid, Final Fantasy, Jak and Daxter, God of War,Uncharted, and Infamous are all games that were built to be played by one person.  Sony already tried to hit the casual crowd with the PlayStation Move, and the peripheral ended up being a moderate success.  The company does not need to lose anymore money trying to woo people outside of its core users.    

Sony seems to be losing its direction with the PS3.  It first produces the game Little Big Planet Karting which will destroyModnation Racers property.  now the company will fall deeper into the financial hole from creating PlayStation Battle All-Stars.  Sony is in the middle of an identity crisis and needs to find itself again.

http://www.examiner.com/article/is-sony-facing-an-identity-crisis

Examiners impressions

Sony has finally unveiled its Smash Bros themed game that has been rumored for months.  The game is now calledPlayStation Battle All-Stars Royale.  This new title is completely  unnecessary, and Sony should have not put the game into production.  While the game might turn out to be fun, the consumers of Baltimore should question Sony as to why it is blatantly ripping off Nintendo.  

PlayStation Battle All-Stars Royal is nothing more than a cash grab at the casual market.  Sony does not need a game like this.  A lot of franchises associated with the PlayStation platform never made it to the big leagues.  Parappa the Rapper is just one title that did not become a staple franchise.  The casual crowd is not going to pick up Sony’sSmash Bros clone to play as Parappa.  Sweet Tooth might have been popular back in the PS1 days, but he is no longer well known by today’s mainstream crowd.  It is also doubtful that most people recognize where Fat Princess comes from.  Since the majority of consumers have no idea who Sony’s characters are, then this game will probably fall flat when it releases. 

Sony needs to stick to the foundation of what made PlayStation great in the first place.  The PlayStation brand has never been about parties or local multiplayer.  All of the biggest games on the platform have always focused on singleplayer gameplay.  Games like Spyro, Crash Bandicoot,Metal Gear Solid, Final Fantasy, Jak and Daxter, God of War,Uncharted, and Infamous are all games that were built to be played by one person.  Sony already tried to hit the casual crowd with the PlayStation Move, and the peripheral ended up being a moderate success.  The company does not need to lose anymore money trying to woo people outside of its core users.    

Sony seems to be losing its direction with the PS3.  It first produces the game Little Big Planet Karting which will destroyModnation Racers property.  now the company will fall deeper into the financial hole from creating PlayStation Battle All-Stars.  Sony is in the middle of an identity crisis and needs to find itself again.

http://www.examiner.com/article/is-sony-facing-an-identity-crisis

@ bolded..not half wrong actually