I was wondering of there's any projects being worked on to add new characters rather than replacing, I haven't been in the hacking scene in a while so please don't flame.
Yes, the clone engine.
No, it's not done.
No, there's nothing else.
There is the Clone Engine but it's not done yet and it's not gonna be done anytime soon.
There's Brawl Masquerade though, who'll allow extra texture slots for various characters. But even this project seems to have been stopped. It seemed close to a release, though. Maybe it can show up anytime soon.