I'd give classic Nintendo characters a pass here. Yes, they are modelled after human characteristics, but that's probably more of a bias that you can see in Star Trek alien species, too. Would I be able to tell if Mario is modelled after a Western or Asian model? He's Italian, but if I didn't know, I'd have a really hard time to decide with many of their characters. Let's count human-like characters in the game first: I'd have 46 out of 74, but I might be wrong (Mario, Luigi, Link, Samus, Dark Samus, Ness, Captain Falcon, Peach, Daisy, Sheik, Zelda, Dr. Mario, Marth, Lucina, Young Link, Ganondorf, Roy, Chrom, Pit, Dark Pit, Zero Suit Samus, Wario, Snake, Ike, Pokémon Trainer, Lukas, Olimar, Toon Link, Villager, Wii Fit Trainer, Rosaline, Little Mac, Mii Fighter *3, Bayonetta, Inkling, Palutena, Robin, Shulk, Ryu, Ken, Cloud, Corrin, Simon, Richter).
When looking at newer Nintendo franchises, you could customize your Mii, Wii Fit Trainer and Inkling just fine by yourself. I won't buy Smash, but can you do it here? You should! It was possible to use your own Mii in Mario Kart 8, too. It's great for identification, I fully agree. But I don't see a point in having a coloured Mario when Mario has always been the way he is.
Should Nintendo develop games where everyone can feel represented? Absolutely, at least if it's about humans and/or the game wants to be a mirror for human societies. Smash is more like a victim of all the other Nintendo franchises that have missed out on chances to include diverse set of characters. Let me pose a question in this regard: As for Fire Emblem with its many characters in each entry of the series - hasn't there been someone everyone could feel represented with? If so, is characters choice for Smahs adequate? Again, I am not a Fire Emblem expert, but I think we should focus on those series that have diversity to offer first and foremost with critique.
And then it's about having to call Nintendo (but all Japanese companies, really) to include the Western diverse societies into their game-design as a whole. It's probably harder to realize or even get its deserved attention in a homogeneous country as the Japan though. If realized, Smash has a much more diverse roaster of characters to choose from.