I don't think any character in Smash has been updated to their current design IIRC, and besides, these villagers are basically their own thing just like how Isabelle is basically her own thing. Isabelle looks like she could've been an echo to villager but it isn't.
Plus, Villager fights using what a resident would do while Isabelle fights with what nick knacks a mayor would have, with tools being on both.
This new villager fighter (Which I'm dubbing Islander to avoid confusion) can fight using the new introduced things in New Horizons such as a vaulting pole, a ladder, (Which sounds like a poor recovery move) the aforementioned crafting table and more.
So yes, I'd say he has a chance in the next Smash game. Though during Smash Ultimate's time it was a 0% chance as the movesets for any character in the AC series is limited compared to other characters where they can go all out. Yes, I'm aware some characters have undergone major move changes so it's also likely the current AC fighters we have now uses any moves related to NH, though I hope not...