I love how I saw people comment in this thread yesterday… only to see a CR reference today.
I know that Sakurai is a fan of this game, but I didn't expect it to get a reference. I will say this though; Captain Rainbow is now a contender for Smash. His chances aren't big as I cannot put him near the likes of Shulk, Palutena, or even Takamaru. However, this does raise his chances as well as others like Takamaru and Lip. Honestly, I wouldn't be too surprised if Sakurai added Captain Rainbow on the roster. With that being said, I see him be an Assist Trophy more than as a playable character.
I do support Captain Rainbow. As a Nintendo fan, his game is rather cool and I love seeing all of these obscure characters get referenced in the game. I wouldn't put him in my top 10, but I would put him in my top 20. I bet his moveset would be cool with using all sorts of yo-yo attacks.