Okay, how bout we have what Klonoa has going for and against him in Super Smash Bros. for Wii U:
Evidence for him:
*Namco is Co-developing the game.
*Subtle hint in Greninja trailer.
*S Flag deconfirmed as assist trophy-type item.
*The game is being produced by Yoshio Higuchi, who worked on various titles in the "Tales Of ___" series, and we know how much that dev team likes Klonoa.
*Klonoa has more games on Nintendo systems than the Playstations.
*Had a Recent Remake on the Wii that was released THE SAME YEAR as the Punch-Out!! Reboot. It means that Klonoa is still slightly relevant.
*Has a fan following behind him.
*Has several similarities with Masahiro Sakurai's very own Kirby.
*Obscurity hasn't stopped characters from appearing in Smash Bros. (R.O.B., Ice Climbers, Pit, etc.)
*Sakurai has never referenced Klonoa by name.
Evidence against him:
*This guy:
*Is a bit obscure when compared to Sonic, Mega Man and Pac-Man.
*Sakurai has never referenced Klonoa by name.
If you wondering why Klonoa being referenced by name is on both lists, it's because normally, a character is confirmed/deconfirmed when they are mentioned by name. I think I remember seeing an interview with Sakurai about choosing the Namco character, and he said at one point, he considered Heihachi Mishima from Tekken as the Namco rep. This can mean either one of two things, 1) He never considered Klonoa despite the cloud hint, or 2) He's keeping Klonoa a secret.