I doubt it's true, but I would be legit mad if this turned out to be the rationale. Fire Emblem and Final Fantasy swap out their entire cast of characters every match (with only the occasional direct sequel), however they're still allowed multiple repetitions in precisely the same game. Zelda has sooooo many one-game-only characters that will still fit great into Smash, only look at the roster of both Hyrule Warriors matches.
The"hard r" isn't even close to the worst shit people used to state. Honestly the fact folks find that word offensive today is hilarious for me because of how completely tame it seems to me relative to the old things.
That is why you'll hear some self censorship from everyone on twitch reason there are things we used to state that Twitch will flat prohibit you for and if you're raging all your angsty adolescent anger is exactly what springs to mind if you would like to allow lose a series of insults. Being an adult is simply having the self control to never state that and say something offensive or nothing at all.
But guy I would not wish to become a young teen now. Our shit was just beginning to be around the world wide web back when communities have been smaller and also we could go delete things we said or used different names for everything. If you're even decent at whatever everyone knows who you are and screencaps any mildly offensive thing you ever state.
Man when they might have been in a number of the high level halo scrims I was in back then everyone there could be perma-cancelled.