I don't see Punch-Out as good source material for a fighting game, let alone one to compete with Tekken or Street Fighter. These other games contain a multitude of different fighting disciplines from a variety of diverse characters, whereas Punch-Out is all about boxing, with a bunch of stereotypes offering different takes on a single discipline.
On top of that, Punch-Out remains such a unique concept in this day and age that it would be a shame for Nintendo to turn it into another, more popular genre.
But I would never turn down Nintendo doing a new IP, so I would certainly love to see them do their own take on a more hardcore fighter without the constraints of a pre-existing IP. I wouldn't really consider Smash Bros a fighting game, since the game is at its best when its doing things at odds with the genre. The 4 player, item filled, random chaos of Smash is nothing like well-balanced fighters like Street Fighter or Virtua Fighter.
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