The Joker not appearing on Superfriends in the Legion of Doom was more of a Cartoon rights issue than anything else. It should be noted that he does appear and has membership in Super Powers 1, and various other comic books. For more information on the Cartoons and rights issue I will post this fun trivia below. Observe.
Around the time Super Friends came out, one of the few rival cartoon it faced (oddly) as competition was Filmations's The New Adventures of Batman (which was a Bat-Family cartoon that featured Batman and Robin with Bat-mite and Batgirl) as I mentioned this was produced concurrently with Super Friends, which then was produced by the competing Hanna-Barbera Productions and included Batman and Robin as members. This is interesting because this marked a rare occurrence in animation history, which saw two studios simultaneously producing series featuring the same characters. The main distinction was that in Filmation’s series The new Adventures of Batman, Their Batman and Robin were voiced by Adam West and Burt Ward. Needless to say, both shows had rights issues resulting in some confusion. Further rights issue. See below.
In Filmation's New Adventures of Batman, Riddler and the Scarecrow were off-limits to the show, as Hanna-Barbera already had the rights to the characters for Challenge of the Superfriends and had them members of the Legion of Doom already (though Riddler does appear in the opening credits of the show in a pink colored costume, and was mentioned being arrested at the beginning of the episode Deep Freeze). This is also the reason why Joker could not appear in Challenge of the Superfriends, though he was planned as a Legion of Doom member originally the agreement and use of the characters could not be set. I think in hindsight, The Joker got the big screw because Superfriends became the superior product and his exclusion from the Legion of Doom is still mentioned in history, as this post clearly shows.
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