In the first game, most of the characters had something that could be abused. Link's Up B and Up A, Mario's Tornado and throw attack. Pikachu's thunder strike. These were, as you said, way toned down. Several of my SSB Mario strategies were made usless. (Mario Tornado followed by Up A is no longer Death Incarnate in the Gamecube version.)
I'm not sure where you disagree with me, though?