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I generally like playing with my friends rather than online as well kind've because of the same reason, but also because i'm old school nintendo so really I don't do a lot of online play at all (except with MK7 which I really enjoy.) But I will try out the online play feature of course but i'm sure i'll be playing with my cousin constantly on local (as thats what i'm doing with ssb64 haha) So yea, I think i've answered your questionwhich do you prefer and why?
I like playing with my friends. It's really fun. Online people are so hard to beat sometimes. So I don't bother. xD