People are still arguing about this?
Toad is my favorite Mario character (after Mario of course). Arguments against his inclusion in the SSB series have been just stupid.
"he has no moves"
Before the first SSB, Captain Falcon would've just driven around in his car. If they can give some racer moves, they can give Toad moves.
"he's too generic"
All the Pokémon say 'Hi!', as does Yoshi.
But why stop there..!
Mario, Luigi, Peach, Wario, Captain Falcon, Link, Zelda, Ganondorf, the Ice Climbers, Marth, Roy, Ike, Ness, Lucas, Pokémon Trainer, Samus, and Pit are all human. Humans are far too generic for a fighting game so they're out.
Fox, Falco, Wolf, Donkey Kong, Diddy Kong and Sonic can all be replaced by a fox, falcon, wolf, gorilla, monkey and hedgehog in their respective clothing, so they're out.
Bowser and King Dedede are both villains, and villains are far too generic for a fighting game. King Dedede could also fall into the animal category above, since he's a king penguin..
Toon Link and MetaKnight both use swords as their method of attack, so they're both out.
Kirby and Olimar are both extremely short characters. Extremely short characters are far too generic so they're out.
ROB is robot.. I don't have an argument for him. There were many ROBs in <I>Brawl</I>.. I just didn't particularly like playing as him.. moving on
Mr G&W is a conglomeration of all things Game & Watch.. I don't have an argument for him either..
If the Mario series gets one more rep in SSB4, Toad more than deserves it. I don't get why people hate him.
(my argument against the arguments people on Gamefaqs have against Toad in SSB)