That article is referring to the interview I already talked about above. Where he's talking about not simply adding a buncha characters and stages and calling it good. He wants a new experience, hence THEIR (Not his) words "Quality over Quantity"
http://andriasang.com/comw97/iwata_asks_smash_bros/He did not feel that it would be right to just increase the volume, adding 50 characters or doubling the stages for instance. He also felt it would be wrong to just improve the visuals. This is why he felt that selecting to make the game for the console just because it would have greater performance would be wrong.
Andriasang was THE first person to translate this Iwata asks interview, two years ago.