Well, apparently they did see the issues, hence battle damage is not in it. I would argue it has no place in Smash Bros. and adds nothing.
Battle damage fits in with games that are a bit more down to earth in their violence, but seeing Mario's overalls get scuffed up and cut or something in the middle of something as overtly cartoony as Smash Bros. would take me out of the experience. The rules of Smash Bros. are so above and beyond different from the real world that emphasizing real world implications seems diametrically opposed to the entire point of the titles.
And no, the Master Sword breaking is nonsense. It's completely out of character for it.
I dunno i do not think most people would notice, or care. I play games and watch things where cartoony stuff gets scuffed up all the time. Doesnt make me think its less of a cartoon, sorry I cannot understand that mindset. I do not see how that would even do that, that just sounds like stobbornees "cartoons must be cartoons," sounds boring
Also, it isnt nonsense, the master sword was made for magical enemies on links planet. The magical beings on links planet could know fuck all about aliens. SO if if fox could shoot a hole through links shield because his shield was made for gannon dorf and not for thousands of years of technilogical advancment, or i dunno kirby bing able to sick up link and take his powers despite not being the chosen one, yes that makes sense. Because links legend only applies to links world , outside of that, he is just some blond kid out of his depth.
Not to mention someone like sonic, do you even know the type of power the people in sonic have to have to be able to do the stuff they do, alot. Do you know what what sonic could do to a human body, let alone knuckles or shadow. Scratches on the masersword is the least of his concernes.
Thats like ghost rider exspecting to be able to beat down thanos or galactus with his sin weaponry. HIs only jurisdiction is his planet, when you venture out into other relms ,what works and what doesnt work gets a bit foggy.
Also metaknights sword if i remembering where it comes from correctly probobly could break link's ... everything.