I've been playing as the Villager a lot today and his down B is really good once you learn how to use it, it's far from OP though.  The tree takes time to create but once its up his down B becomes a good KO move and you can use the tree to block projectiles and trap people under it if you time cutting down the tree right. I think the villager is actually a lot better than people think his air moves are quick and have decent knock back. He also has great recovery. The only thing he lacks is a reliable KO move. Unfortuanlty his strongest KO move (his down B after the tree is up) is limited to only a few seconds.

I think Megaman will probably be a top tier character. Like others have said he just has a big learning curve to master like Olimar, Ice climbers, Peach etc. 

Edited: Posted twice XP

Totally agree man. At this point, I've probably played over a hundred 1 V 1 matches, almost all of them with villager. He doesn't have many attacks to kill with, but once you get someone off the ledge with him, it's game over. Most of my kills come when the player is at less than 75 damage. And his down b is really not that great...his air moves are incredible though.

The Demo looks Spectacular... I didn't think Smash 3DS would look this smooth and good. My Christmas list just got slightly more expensive! It looks like it takes a lot from OG Smash from N64.

I heard Yoshi is broken too... Any word out on him?