At the end of the day, Sakurai and Nintendo are gonna make characters they want or whatever will be good for marketing.
If it's someone you don't like, it's ok, not everyone can be made happy.
Also, stop saying "Oh, they are not iconic/popular enough."
At the end of the day, those things don't matter at all, you think anyone remembers Duckhunt? Or wanted Wiifit trainer? At least Xenoblade is current and has a loyal fanbase.
Too many sword characters? Well not saying I don't disagree, but I learned to grow numb to it and accept it, just be greatful we are all along for the ride