Jesus fuck, some people seriously can't let this topic die.
They did, but the Smash Community in all their whiny glory, ruined things by constantly complaining about (some) items being allowed. Instead of being happy that Smash was being showcased, they ended up killing it.
It's one of the reasons why I'm fucking done with the community as a whole. The majority of players are a bunch of hypocritical whiny fucks that don't give a shit about expanding the scene at all, and complain when things don't go their way. The MLG Incident and the drama that was created afterwards is the perfect god damned example.
I wish I could go back in time to when I cared about competitive Smash, slap Past Beef in the face, and tell him to concentrate on Capcom vs. SNK 2 instead.