SuperLink said:
Clod in Brawl? Puh-lease, he doesnt have a chance in hell, besides never having appeared on a Nintendo console, and being from a game that was published by Sony, Im sure Sony could get a say in that too...
*Looks at GBA copy of Kingdom Hearts;Chain of Memories* 
I don't think Sony would have a say in it at all. Remember Final Fantasys 1,2,4,5 and 6? They all first appeared on Nintendo Consoles, and were published by Nintendo themselves (I think), yet were eventually ported to PS one. If Nintendo did have a say in that, then they sure as hell didn't do anything about it.
Also, consider this; Final Fantasy 7 marked the point where the Playstation brand started to dominate Nintendo's efforts and subsiquently, the next 10 years of gaming. If the head Character of that game appeared in a big title, on a resurgent Nintendo console, what a kick in the teeth for Sony that would be.
Not to mention the many Sony and multi-format games fans who have dreamed of a Cloud vs Link matchup who would undoubtedly pick this up, and you have some good incentives for Nintendo to pursue the useage of Cloud.
And another point, oweing to the fact that Cloud's inclusion is something that many would deem impossible, wouldn't it be the perfect major announcement for the game, the one that would turn heads more than any other? Sakurai could easily have kept Sonic under wraps for that big announcement, and just used the level editor feature as a compromize for the delay, but he didn't.
Just some food for thought there.