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As far as "clones" go, I think a nice fix for that issue would to just have "skins" for different characters (Sort of like how in Brawl Wario has a WarioWare suit and a classic Wario suit). The suits would have the same hitboxes, animations, movesets, and stats as the original suit, but just with a new skin so we can include even more characters.

Examples

Fox > Falco/Wolf
Olimar > Louie/The President
Ganondorf > Demise
Mario > Paper Mario
Skyward Link > Twilight Link/Dark Link
Samus/Zero Suit > Dark Samus/Gandrayda

etc. etc.

This way we could include more characters (because the more characters the better) but also still have a focus on unique movesets and unique characters (less time tweaking "clone" characters, more time making all new unique characters).