411570N3:
I have some characters planned. I'll throw these ideas out here, and if anybody wants to sprite them, send them my way and I'll take care of the code.

Sumo Wrestler - Heavier than other characters, very limited jump. Special move is BELLY OF THE WHALE, if you will - you just have to aim at the opponent and he sucks them in and eats them.
Sweaty Professional Wrestler - Your standard wrestler. Probably very similar to the Luchador, expect a different special move. Maybe a head-crushing suplex, as Azukki suggested.
Midget - This is sort of a maybe, only if I can get it balanced with other characters. Can't jump very high, but he's very good at taking you out at the kneecaps. Easy to crush. I have yet to decide a final move for this one.
Robot - Wrestling robots are cool. Some terminator-styled thing. Special attack is a death laser, of course.
Cowgirl - It's either this or a generic female wrestler, but it seems more interesting. Particularly nimble, but not as powerful because she's skinny. Special move equips dual pistols, each having a single clip of 6 rounds.

I'll probably come up with more later.

The Decaying Soldat/CrazyMLC/Scope0:
Actually, there's only a crowd in this map. I'm intending on other maps having different environments, so I'm not going to make it anybody's specific move, or it would be useless on other levels.

Contrary:
Your special is probably disappearing because you pressed the pie menu button. It immediately uses up all your energy. That way you can also miss with your special attack. I haven't had any other buttons cause this for me, so maybe you hit it by accident?
The gameplay is actually pretty slow, I'll give you that. Because of the fact that it uses CC's physics engine directly to control everything, it can't move much faster. I think it works more like the original thing this way anyway, so I'll leave it at this for now.

Also, that's probably not going to be first-party content for this, but people are more than welcome to add in their own wrestlers. I'll try and make it as easy as possible to add them in.

Need... enemy... wrestling... AI...
Cannot... play... game...

Added a new level. Unfortunately, the graphics are painful to the eye and I would really appreciate anybody replacing them.

For the midget I'd suggest a move where he jumps to grab the opponent's neck, crouched up in a ball, before launching backwards, the opponent still held by the midget's feet. The midget then does a backflip to drive the opponent into the ground or possibly high into the sky.
Also, for possible character ideas:
Martial arts guy: Fast, decent jump, above average attack and fairly weak defence, but has a chance to block attacks automatically. Pressing a button within a certain time of blocking to do a counter-attack. Lacks special attack, but can do combos by using up special bar: at full the final hit is a giant flaming uppercut.
Boxer: Medium speed, fairly strong defence, but can hold a button to block and take less force from impacts. Has strong punches, but his special is only a better punch.
Capoeira-type dude: great jumping, decent speed, decent attack and defence. Can does lots of kicking.

So I assume that not every character will have the same set of basic attacks, correct?

I'd prefer to keep them the same, actually. Again, the point of this is to stick with the basic gameplay of Brain Wrestling, which is to use CC's physics engine. The only exception I make to that is special attacks.

Hmm... okay.
Is it possible to make it so that if you attempt to walk during a jump, the legs instead stick out to allow you to kick the enemy?

Nope. Legs are impossible to move with Lua.

Maybe a sprite of a clone with its legs out?

Or a crawl path of the legs sticking out, and executed by Lua
(crawling using the normal button would be restricted? (that
would restrict Body slamming, the most effective technique )

Anyway, I really like the concept, and I might make my own wrestler for this.

Aw I am sad no Judo guy. :<
I've played a bit more and I'm starting to understand the system (yeah I'm slow). I think the headbutt parries are extra sexy, but do they stop everything?

Also concerning specials, is it possible to have the Luchador reach out his hand so it's easier to space the special? I may simply be bad at this, but i think I miss it a lot.

I'm going to maybe try to sprite someone (cowgirl, naturally) this week, but I've already failed at a cowboy hat, so I dunno if I can do a whole cowgirl. Maybe I'll be able to blackmail one of my friends into playing with me, too.

zalo:
Exactly, crouching is one of the best parts. That's the only other way to do it aside from getting really hacky, and it just seems to silly to go that far for such a small thing.

Contrary:
The whole system is just using CC's physics. Headbutt parries entirely rely on what the game decides should cause an explosion of flesh - if it stops it, you happened to hit the other thing at the right angle.
It's pretty easy to change the Luchador's grab distance (it's a variable in his Lua file in the Create function). I don't want to make it too easy to grab, though, as it would just make it a race to see who can fill their special meter fastest.
And a cowgirl sprite would be wonderful. If a hat is too hard, just do a blonde ponytail or something and somebody else will probably do the hat.

Unitec for hat, anyone?

Agreed.

Other than that, I say no to ranged weapons. That's too much of an advantage.

It's exactly 6 decent shots though. That should be enough to take out exactly one guy if you're really accurate, seeing as the opponent will be moving. I think it's fair enough as the equivalent of the Luchador's insta-kill pile-drive.

If it takes 6 or 4 shots to kill then it's better, yes. But what about the laser of the robot?

It could be like, you aim, you press the fire button, 1/2 seconds with standing still, eye lazor.