Can it be done, Yes. Should it be done, No. Because unless they somehow make this game cheat proof, its gonna be pretty annoying online playing people who can smash you in 1 hit, or take no damage.
Just look at Jump Ultimate Stars, when it first came out, the online was amazing with a few cheaters/unfair people. Now practically every Random match on Wi-Fi has atleast 2 hackers.
uuh... Thats not really a valid reason, and i honestly am quite suprised that Nintendo hasnt done this already, if they just do a decent remake of the N64 version, add some characters/Content im sure they would make lots of $$.