>implying banjo has a future
The 5th character
Another Indie pulled that off several years before Cave Story existed, all while maintaining a solid fanbase to this day.
Did you even read my post? Touhou wasn't anywhere near as well known as it is today back in 2004 when Cave Story came out. And Cave Story was way more influential to the western indie scene than Touhou
The problem is that Touhou wasn't a very good in game in terms of quality, neither in a popular game genre (despite being a huge influence inside it, but gameplay aside, everything screams amateurish). Also you are forgetting Touhou didn't caused impact in the west for indies as much CV did back then.
How would they faithfully represent frisk as a character in smash? The whole point of undertale is that you don't have to fight so fighting is extremely simple. I wouldn't mind undertale content in smash but I don't see a character working.