Who the Happy Mask Salesman is
The Happy mask Salesman is the Hyrulean Counterpart of Skull Kid and Vice Verse.
Lets work with some facts that we all know of...
1.Skull Kid comes from Termina. He was banished to Hyrule (basically).
2.The Happy Mask Salesman is the same Salesman from Ocarina of Time.
3.Termina is a world where parallels of Hyrule Citizens exist.
4.The Children in the Moon appear to look like the HMS.
5.The Children ask questions of Friendship; this usually is used as an indicator to tell us that the Kids represent Skull Kid.
Regarding Point 4: You can see the HMS's Hair and Ears on the child

All points combined seem to show us that Skull Kid's true face is that of the HMS.
Quote:
キミの・・・本当の顔は・・・どんな・・・顔?
Your…true face…What kind of face…is it?
Your true face...What kind of...face is it?
お面の・・・・下の顔が 本当の顔・・・なのかな・・・
The face…under the mask…I wonder if that’s…your true face…
I wonder...The face under the mask...Is that...your true face?
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If this is fact, then it seems that, as a child, Skull Kid was a mask salesman and was friends with the Four Giants (Anjean's story indicates this so these times must be REALLY Long ago).
For some reason, he would attempt to leave Termina but is lost in the woods and becomes a Skull Kid. He returns and slowly progresses into a troublesome prankster (especially, or specifically, after he lost his friends, the Four Giants). Years later, he is banished to Hyrule and, soon after, encounters Link.
Moving on...
Here are a few quotes from the children:
Quote:
たくさん・・・お面・・持ってるね キミも・・・お面屋に・・なるの?
You have…a lot of…masks. Will you become…mask salesman…too?
Masks...You have...a lot. You, too...Will you be... a mask salesman?
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(The choice word of "too"
Heavily implies that the kid speaking is, himself, a mask salesman)
Quote:
ねえ・・・お面・・・もっと・・・ほしい
Hey…I want…more…masks.
Hey...I want...more...masks...
*gives masks*
へへ・・・ありがとう・・・キミ・・・やさしいね
Heh heh…Thanks…You’re…nice.
Heh, heh...Thanks...You're...nice.
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(this shows that masks are important to the children and seem to make them happy. Masks are important to the HMS as well)
Quote:
キミの しあわせって どんな・・・こと?
What makes you happy…What… is it?
You...What makes you...happy?
キミの しあわせは・・・ほかのひとも・・・しあわせ なのかな・・・
What makes you happy…I wonder if it makes…other people happy, too…
I wonder...What makes you happy...Does it make...others happy, too?
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(From this, i derived two things: 1. The wonderment of what makes people happy is indicating that the moon child is on a search to either make people happy or make people unhappy. Making people unhappy is the main activity of Skull Kid in
MM but he, at times, shows repentance for his deeds. The question, after understanding that Skill Kid is not naturally
Bad, represents Skull Kid's search for providing happiness which will be explored in the next part...)

The Purpose of The Happy Mask Salesman
...the second thing that i derived from the quote is that the Happy Mask Salesman is a good person who uses Masks to make a person's life better (or, in the case of
MM, sets up events that surrounds masks). The HMS is a man that is obsessed with masks, so much so that his face even acts as a mask to his varying emotions, with no transition between faces. Yet, by his quotes, i will summarize what is being conveyed by myself Through commentary.
Quote:
おお、やはり 仮面から 邪気が 無くなっている・・・
Oh, as I thought, the evil energy is gone from the mask…
Oh...So the evil has left the mask after all...
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(It seems he expected it)
Quote:
たしかに 受け取りましたよ
I really did get it back.
Well, now...I finally have it back.
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(Yet he is shocked that it was accomplished/that Link made it)
Quote:
さて、ワタクシは 旅の途中ですので これで・・・
Now then, I was in the middle of a journey, so I’ll be going…
Since I am in the midst of my travels... I must bid you farewell.
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(What is his journey? At least we know he is on one)
Quote:
出会いがあれば 必ず 別れは 訪れるもの ですが、その別れは 永遠では ないはず・・・別れが 永遠になるか 一時になるか・・・それは アナタしだい
When you meet, a parting will surely come, but that parting doesn’t have to last forever… The parting could last forever or only a short time… It’s up to you.
Whenever there is a meeting, a parting is sure to follow. However, that parting need not last forever... Whether a parting be forever or merely for a short time... That is up to you.
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(The message is for Link in regards to Navi, The Message is for Skull Kid in Regards to The Four Giants. He Knows their turmoils)
Quote:
おや、アナタ ずいぶん たくさんの人を しあわせに してあげましたね
Oh, you have brought happiness to quite a few people.
...But, my, you sure have managed to make quite a number of people happy.
アナタの持っている お面には しあわせが いっぱい詰まっている これは 実に いい しあわせだ
The mask you have are stuffed full of happiness. That is truly a good happiness.
The masks you have are filled with happiness. This is truly a good happiness.
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(I'll let the readers, now, take these quotes for what they are.)
The Happy Mask Salesman is on a Journey to make people happy, through masks. Now, does this mean he LET Skull Kid steal Majora's Mask and allowed Skull Kid to travel to Termina? Perhaps...
And, as we all know, the HMS Knew things about what had to happen with no real explanation as to why he knows. For ex: he knew Link needed back his Ocarina in order to complete the Objectives, He knew the Song of Healing because of how it releases people from their anguish and, thus, being the very tool that Link needed on his Quest, he knew of the power of Majora's Mask, etc.
Going back to the Moon children's question about what makes people happy...
In the end, it shows that his counterpart, though unlike him, is still searching for the right thing to do. I'll end with quote of the moon child asking a question on what is right.
Quote:
正しいことって・・・どんな・・・こと?
The right thing…What…is it?
The right thing...What is it?
正しいことすると・・・本当に みんな・・・よろこぶのかな・・・
If you do the right thing…I wonder if it will really…make everyone happy…
I wonder...If you do the right thing...Does it really make...everybody...happy?
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He's not the
Happy Mask Salesman. With his devilish Grin.
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He's the
Happy Mask Salesman. Knowing (and proving) that Masks bring happiness.