Interesting about the pity smashes. I've noticed it a few times but thought I just didn't see the smash ball er something...
In the grand scheme of things, final smashes usually aren't nearly as unbalanced as say, a blue turtle shell in mario kart, so I don't mind.
The incredibly vicious ones kill everyone equally usually, and if they don't, they are at least dodgable. Therefore you won't usually have the issue of a last place scrub screwing up a heated battle between first and second place.