Basically, those two can happen at the same time. However...
Klonoa in Smash? Only if Sakurai is interested in him, or HideoY keeps asking for it - Neither of them seems true.
Klonoa 3? HideoY must be head-hammered to think about it. Remember the tragedy of the Wii remake? ("The tragedy" is also what Japanese refer to the abysmal sales) I wonder how much resources and confidence does he have now. I've heard he said the budget was tight. Now imagine how much money Namco will give him for the next game...but don't blame Namco, because the golden age of Japanese companies have passed away.
Why would I think HideoY might lose his confidence? Actually, making a game is really a hard job. You have to gather different kinds of people first: programmers, artists/3D modelers, marketers, musicians...plus directors, who bond the whole team together. If all you see is disappointing sales after the hard work, what would you think as one of the director of your game? Not to mention the original DtP is one of his best work, but he failed at remaking it.
Further more, HideoY was only titled a sub-director in the original DtP and LV. That probably means he had full support from Namco, and bosses of Namco are still the ones who can decide Klonoa's future - I believe the shutdown of Shiftylook and the release of Empire of Dreams on VC have told the fans what they think.
The end of the Mother series? The director said he thinks his job is done, thus there's no more new Mother games from him. If anyone in Nintendo want to make Mother 4, he's actually open to it. You know, he's not a real game developer; he made the Mother series just for fun.
Conclusion? I still can't see the possibility that Klonoa will join SSB4, and we have to find an angel investor to help realize Klonoa 3 (more time for HideoY to think as well). The fans' petition is more like forcing Namco to me.
Here comes off-topic:
Eric's head must have got hammered, too, if he choose to voice Klonoa again - Just look how many people hate him as Klonoa's voice actor! Poor guy, the manual only says Klonoa is a boy, but never mentioned whether his voice changed or not. Well...I'm not considering his performce.
What I really want to say: Don't hate Eric for acting as Klonoa; hate him only if you believe he acted badly!
