To completely prove your point, I will present my theory:
I am absolutely certain that it’s some sort of Subspace/story mode, and I have evidence, in the form of Rathalos. Rathalos is, as they stated, both a boss and an assist trophy. The stage in which Rathalos is a boss is this one here (my apologies for the shitty YouTube screencaps):
It’s a pretty cool stage, but what’s most notable about it is that it is not in the stage select menu that they showed us (which, I might add, is supposed to have every stage from the get-go)
They told us there were 103 stages in total, and there are exactly 103 in this menu, but there is no Rathalos/Monster Hunter stage.
In conclusion, Rathalos is a boss in some sort of story mode, and the only person that can convince me otherwise is Sakurai himself
ive never looked at an animated movie and go “i wish this was live action” but i have looked at a live action movie and went “i wish this was animated” countless times