The unfortunate truth of the matter too is that this won't do a thing to Nintendo.
The amount of people who this will offend is astronomically small compared to the global audience Nintendo seeks to market to. The actual group behind these events, fangames, mods, and other such things are...Well, take it from someone who adores fan passion project stuff: We're small. In the grand scheme of things to Nintendo, we aren't even a blip. If I had to speculate (since I cannot prove 100%), I imagine they could honestly care less how mad they make us. Especially when we're gonna continue to buy their games anyway, and at the end of the day, if money is still being made, why do they need to care about "bad press"? Why do they need to "value fan opinions" when we fans yell a bit, make a nasty hashtag on social media, spam it to heck and back for a week, and then forget about it and go right back to consuming their products?
The only way there would be definite change is if these decisions hurt their bottom dollar in the end, and they don't. They won't. People keep saying it will, that "the good faith will eventually run out" and "they'll burn the community", but we've been saying these things for well close to a decade now ever since fan projects started to rise in prevalence and the amount that are made.
And who's to say that our community shunning them would even affect things at a major level? Sure, you'll see a couple thousand, maybe even twenty or low hundred thousands use this hashtag and vent anger and outrage, but...How does that compare to the silent majority who just don't care? Who aren't going to care? Take that into account, and we just repeat the exact same cycle every same time, and act surprised when it happens all over again.
The arguments for this whole thing are extremely nuanced, and I don't believe it should be blanketed over "right" and "wrong".
Me personally? Yeah, I don't like it. I think it's pointless, and a complete waste of resources and their own time to even care about it, but it's their IP, their property, and they technically have the legal right to do it. While I support the passion of artists, I also believe that artists should have say over what happens with their art, and Nintendo are the owners of their own art. If they don't want certain things done, then yeah, they should have a say. Does that mean that I think they should be as aggressive as they are? Absolutely not, but again, not a simple blanket solution.
In short: