I don't care where you are on the internet, could be a golf forum, just never, ever bring up so called casual versus so called tournament play. It ends badly. Both sides think they are right, neither side is. Play what you want to play.
I've run tournaments with no items, FD only.
I've also run 4 man BONUS tournaments with all items on high.
People will play smash, and people will get really good at smash if you offer money. Any form.
To me, the game is a tad dry without items, but it is a good way to learn how to play.
Also, I'm of the mind that based on what I've read and seen that the game is now balanced around smash balls. Think of all the concessions they have to achieve balance. You need to beat them around, you can knock them off people, and they move like crazy.
I think we're going to see a third entry in this classic struggle. No items versus all items versus smash balls. It's going to only get worse I'm afraid. So it's best just to ignore it.
If someone is at GDC they should ask Sakurai want he thinks about it.