Well this thread is funny, but it forgets about some of the most important questions!
Instead of asking who shouldn't be in the game, we better ask "Who can be in the game that isn't yet?"
The answers are as surprising as shocking. First, we clearly see that the DK universe and the Mario universe are connected. This means that all the famous DK characters could possibly be part of MK.
But wait, this goes even further! Remember Diddy Kong Racing? Remember who was in the game? Right, Banjo and Conker both were there to drive together with Diddy Kong. This means, their respective Universes could all be invited to MK too.
You sure know what's next. Apparently, Mario and Sonic are both able to go to the same Olympic Games... That clearly shows that Mario and Sonic's Universes are linked too! Sonic characters in MK should only be a question of time then.
You see where I'm going, right? I won't continue anymore, all I want to say is: Mario Slam Basketball...