Yes it does exist, and yes it's a valid
machinima type.
Anyways, Super Smash Bros Machinima started picking up back in Melee, with the 360 Camera Melee, followed by the Debug Mode. Now with Super Smash Bros Brawl, Replays along with Hacked Camera Gameplay make Smash Bros Machinima a quick and easy process.
Examples:
And many, many, others.
