This is not a button mashing game. If you play with people who know what they're doing, button mashing will get you KO'd in no time.
Try watching some YouTube videos of tournaments (I know they're out there).
As for the % meter, it's exactly like an energy bar, except that there isn't an "end" where you automatically lose. You can be at 150% (one good hit could send you flying) yet still manage to pound on your opponents and come out with a win. There's always a glimmer of hope if you can avoid the hard hits...and flying items....and explosions....and environmental hazzards...and assist trophies....
My End of 2008 Hardware Predictions (console only):
Wii : 50 million
360: 28 million
PS3: 24 million
These predictions were made on January 3rd and won't be revised
