What Sony needs to do to revive hype in PSASBR is:
-Include Cloud, Crash Bandicoot, Leon S. Kennedy, Ivy, Seigfried and Solid Snake.
-Get rid of Zeus and Isaac.
-Get rid of certain patches.
-Make Polygon Man an actual BOSS.
-Include the stages: The Village (RE4), Ostenbiergh Chapel (SCII), Crash Bash (Crash Bash), Final Battle (FFVII) and Shadow Moses Island (MGS series)
-Make a better engine and more time
-Get better online reception
-Have Star KOs and Screen KOs (To stun opponents)

That's what I think they should do. That would certainly spark MY interest and a lot of others because of Leon, Snake and Crash.

So they can get ripped apart by more Smash fans?

Okay, I see where I went wrong on that.
Well...not include that, then. But hey, at least the characters I think should get in are rather popular.

Oh...
Well let me remake this:
-Put in Crash, Leon S. Kennedy, Seigfried and Solid Snake.
-Get rid of certain patches.
-Make Polygon Man an actual BOSS.
-Include the stages: The Village (RE4), Utopia of the Blessed (SCV), Crash Bash (Crash Bash) and Shadow Moses Island (MGS series)
-Make a better engine and more time
-Get better online reception
-Make some of the characters (like Drake) more realistic looking
-Add cooler items in the game.

Sure, why not.

I'm pretty sure I've said this before, but PSASBR isn't a bad game because it's a Smash rip-off. It's a bad game because it doesn't rip-off Smash enough.

A Smash rip-off would have actually been fun. Instead we get something plagued with a dumbass "you can only KO people with super moves" gimmick.

That idea has it's flaws but if Superboy actually attempted to tweak the system it might have become a bit more interesting, though they could possibly copy the system and get away with it from the looks of it plenty of Smash Clones got away with it.
Examples:Battle Stadium D.O.N.,Cartoon Network Punchtime explosion,a Zatch Bell Smash Bros type of game I forgot the name.

Cartoon Network Punchtime Explosion?
Is that on a system or PC?

3DS, and PS3.

In response to Firebrands character suggestions
Crash
Spyro
An Assassin's Creed Rep
Sora
Cloud
Dart
Lara Croft
A Resident Evil rep (Chris IMO)

Would make the roster just about perfect

Well, it was also ported on Wii U and Xbox 360, as I read from Wikipedia.

@Zendaya: Well, Sora and Cloud are unlikely, Spyro will NEVER get in the game for obvious reasons, and Leon would have more popular vote as the RE Representative.

Leon would be cool but do we need another character with a gun?

Well, Leon can do a lot of other things, even without guns. Heck, he can even go in with a knife, grenades, the grenade launcher and the PRL-412, and he can be set.

If he really wants to be amazing in the game, he could be equipped with:
Handcannon
Dual Wing Shooter
PRL-412
Grenade Launcher
Knife
Grenades

And I think his Supers would be:
Level 1: Uses the Hydra shotgun.
Level 2: Summons the Tyrant T-103.
Level 3: Calls in a helicopter and uses the Chicago Typewriter.

If he was in the game with these, I would freak out.

I remember back in the day, I made a special list for Spyro. If I rightly recall...
Level 1 was his Supercharge move, with a shorter range than usual.
Level 2 was summoning Cynder to fly across the stage breathing fire (ideally it would have been a charged shot from Hunter, but he's not coming back).
And his level 3, I was proud of this one in fact, was to turn all opponents into sheep.

They really just need to look at more older PS games for inspiration with the DLC characters. That would help a lot. Regardless of Square hate Sora and people like Cloud are good ideas. And Solid Snake.