This is a bit of a bump, but this is the kind of hack I was looking for after spending several hours replaying Super Star Ultra and becoming really bored with its difficulty nerfs. While I've always enjoyed Kirby as a sort of laidback "play how you want" platformer, every mainline Kirby game since Squeak Squad has become easier than the last, so I've been feeling pretty starved for some genuine challenge.
If you ever plan on updating this, here's some feedback I have on the changes you made here.
* I'm still trying to decide what I think about the HP nerfs. Kirby I think is fine and usually requires about three or four hits to take down, but the ally consistently dies in two hits, which is a bit ridiculous considering how eager it is to facetank damage in the first place. I think a better resolution would be to give Kirby and his ally the same health pools, but to make the ally immediately explode on 0 health (if you can find out where the timer is for that).
* Blocking was definitely the main offender in the original game and runs contrary to Kirby's gameplay formula, so removing it was a good choice. It especially makes the RPG battles more compelling, since you now have to find more creative ways to avoid damage instead of tanking through all of them easily. Now, I do think it would be possible to balance blocking so that all attacks do chip damage against it -- but with that being said, I don't miss its absence in the slightest.
* Though I don't have much to complain about the moveset damage tweaks, Ninja in particular feels unusable. Ninja's problem is that many of its close combat moves are unreliable -- the standard B and standard aerial B moves require Kirby to come into point blank range (high risk of running into the enemy hitbox), and the dash move rarely kills its enemies, which also can cause Kirby to lose his ability by literally running into the hitbox of the enemy he just attacked. Since Kirby loses this ability in one hit, I feel like there's no opportunity for me to use Ninja effectively. The shuriken throw and the drop kick are the only moves that I feel comfortable using with this ability, and the former isn't as strong of an option as most of Kirby's other ranged abilities. In order for Ninja to have a functional role in this hack, I think either Ninja Kirby would need to have some of his close range options strengthened or his long range damage nerf partially rolled back (maybe with an attack speed nerf to compensate). I'm better off giving Ninja to my ally so that he can machine-gun shurikens at the nearest enemy before getting squished, and I don't think that's a healthy role for the ability to play.
* On that note, I think pretty much every other ability here works great under the new system. The ranged cutter nerf wasn't overbearing, and Cutter's close quarters moves are generally easier to use than Ninja's, so I still found myself using the ability fairly regularly. On the whole, my ability usage has been pretty evenly spread out, as the design philosophy for favoring close vs long range works pretty well with the other changes present. For instance, while Hammer is basically untouched and can wreck face with hammer flips, the lack of blocking and the risk of losing that ability permanently after even a single hit is enough to balance it against something like plasma, which no longer relies on fully charged attacks for DPS. Perhaps the only other change I would make in the moveset department is to slightly buff Beam's standard B move, which has always been needlessly underwhelming even against the tiniest enemies.
* I can't count how many times I kept habitually trying to swallow the ability star back up. It would be nice if the ability star just disappeared entirely so that I'm not fighting against my instincts.
On the whole, this was a pretty fun modification that did a lot to change up the meta for me. Even some of the early game bosses that I would have easily just shrugged off such as Kracko and Dedede have a lot more presence due to these changes, and I'm forced to actually respect their attacks and try to out-maneuver them. Meta Knight in this hack marks the first time I've ever received a legitimate game over in KSS (outside of Arena mode), but because there's always a strategy to maneuvering around enemies, and since the game is very forgiving about starting you back up at reasonable checkpoints, it never feels frustrating or unnecessarily punishing. The only area of the game where it feels like this hack doesn't feel particularly graceful is Milky Way Wishes -- and that's only because the changes to losing abilities is rendered meaningless. But that's a minor point.
Anyway, thanks for making this. Cheers.