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thekitchensink said:
"The idea behind the game was to make an unparalleled fighting experience that took specific advantage of the analog stick, which was one of the N64's keystones at the time. It wasn't until later in the development that Sakurai had asked for permission to slap Nintendo's most well-known characters onto the bodies of the fighters and market the game as the perfect fanboy fighting experience."

WTF??? Is this true???
  Yes, Iwata had a series of interviews with Sakurai, which stated this very thing. In fact, IIRC, Iwata and Sakurai worked on this by themselves largely, doing the artwork and programming in their spare time. I don't have the links on hand, maybe other people could point you in the right direction? The feature was known as "Iwata asks" I believe.