For example, wii homebrew is not taken down by nintendo, even if there has been a recent "discovery" that the wii homebrew had relied on decompiled nintendo SDKs.
Nintendo's litigious intention always has been profit driven (and this includes vaguely IP related issues, such as palworld's game mechanics - which i think is frivilous but apparently not according to the courts).
…Especially adult passionate fans of children's media.
Do you happen to have a link handy to an opinion document? It seems weird that Palworld’s “mechanics” would put them under fire but somehow development teams behind Tem Tem and Nexomon (and Cassette Beasts and Abomi Nation and ...) get away with selling games that are primarily about capturing and/or befriending different monster species and pitting them in fights against other monsters.
A funny thing about Nintendo games I've always noticed is how completely disconnected the fans are from the people making it. Like, people argue about Zelda games' lore and timelines and such, but Nintendo cares about this so little that BotW and TotK have the same plot even though one is a direct sequel.
I'd guess that zero of those "Zelda T-shirt and cargo shorts" people work at Nintendo and that almost none of their employees have had video game-themed weddings. (Well, the US office is in Seattle so that one's definitely possible.)