I don't think it really is going to matter to them, though. The issue is having the name of Super Smash Bros associated with child predators in anyway. That's not a good look regardless of whether Smash is a background element or a tool in and of itself.Yeah, but in that case, Nintendo was enabling predation by the functionality of that app. Smash Bros is only a background element of the predation here, the actual cause was the culture of the scene that followed it.
I think the best thing Nintendo can do is to ask for specific rules to be adhered to at any event that hosts Super Smash Bros tournaments (such as always required parental supervision for minors, age brackets, etc), and if any event fails to provide any of that, then DMCA it.
I do agree that would be a good solution.