I think you all fail to realize that Super Smash Brothers is not only a single-player game. Are you all honestly telling me that you all want a Super Smash Brothers game that is designed specifically to play it by yourself?
The only reason that I have ever played Super Smash Brothers by myself is to unlock all the characters and stages. It is a rather boring game to play alone.
Lets take a look at some of the potential issues. As mentioned, the Nintendo DS has limitations.
The control scheme is just one of the very minor limitations, and has already been addressed. I personally do not think that this should have been addressed to begin with though, as for the Nintendo DS has more than enough buttons for a Super Smash Brothers game.
The Nintendo DS should be more than capable of handling an "advanced" version of Super Smash Brothers for the Nintendo 64, so there should not be any hardware specific limitations.
One of the limitations that comes from the Nintendo DS itself is the screen resolution. To put it simply, the Nintendo DS does not have a big enough screen to play Super Smash Brothers decently. Have you ever tried playing Super Smash Brothers on a screen as small as the one on the Nintendo DS? When the camera zooms out, it is damn near impossible to tell where you are and what you are doing. The resolution would defiantly be one major limitation that they would have to find a way of working around.
By all means the Nintendo DS is capable of handling a Super Smash Brothers game, so the next step would be to look into the market. This is what would most likely prevent Nintendo from producing a Super Smash Brothers game for the Nintendo DS.
Is there enough of a demand for a Super Smash Brothers game on the Nintendo DS? I don't know about you, but where I live, I only know of a couple people that actually play these games by themselves. Most of the demand for this product comes from the ability to play it with a group of friends. Take that away, and you're taking away a large chunk of the market.
The public is a highly important part to any series such as this one. The image of the series must remain high in order for people to keep purchasing new games. I'm sure that a lot of people would go out and purchase a Super Smash Brothers version for the Nintendo DS simply because of its name. That does not mean that they will enjoy playing it alone. And therefore, suddenly Nintendo has ruined the image of all the fans who did not enjoy playing this game alone.
Although I am personally against this idea because Super Smash Brothers should not become a single-player game, you must also realize that there are a lot of other issues that would prevent them from creating a Super Smash Brothers game on the Nintendo DS.
I apologize for my lack of more details, but I am really tired at the moment and I need to take a nap.