After much thought, debate, and proofreading of this post, I've come to the conclusion that they are in the right.
I guess you could say that VGBC is sacrificing a very large and dedicated portion of the community in order to make the community even bigger, because let's face it; from a business perspective, it's smarter to focus on Smash 4 and Melee, since those games are more popular overall.
If VGBC did the exact opposite and distanced themselves away from Nintendo, they'd be far less likely to have a lawsuit knocking at their front door. However, that'd cause a problem as well.
In response to the gentleman who said "PM has done so much for the fans, much more than Nintendo could ever do with Smash." I have to say that while you're not completely wrong, you're mostly wrong.
The Smash community (In this case, specifically the Project M community) doesn't have millions of dollars to throw around like Nintendo does. They also don't have the media pull to bring in as many newcomers as Nintendo does.
Remember the Smash 4 Invitational? Remember that HUGE crowd and the CRAPTON of viewers? I'm willing to bet that hundreds of thousands of casual gamers were introduced to competitive smash in that one day alone. WE didn't do that. Nintendo did. We couldn't pull a tenth of that much on our own. Nintendo has the money and the means to do it. We may have a dedicated community, but in the real world, money is what makes things happen.
To use a musical anology, it's liking leaving Candlelight Records, a somewhat big label that mostly contracts underground bands) for Roadrunner Records, one of the biggest labels with the biggest pull, however, your overall vision may be warped to match the interests of them.
It's obviously the smart choice if your overall goal is to make yourself bigger. However, the difference here is that adding all of these casual newcomers to the competitive scene is NOT a problem, because it's the opposite, since they are adapting to us, rather than the other way around.
I really hope that Project M can find a way to coexist with Nintendo, but if the two end up going to war, the multi BILLION dollar industry is going to win, and common sense dictates that you side with the winner.
After not only Apex, but this, Project M may very well be on it's last stock. Many of you interpret this thread as "Trading Project M, the better game for Smash 4" when that's not entirely the case. Siding with Nintendo will increase the community exponentially, and if you're willing to sacrifice this community's future for a mod of a game that could get four stocked by Nintendo at any moment, then you're a selfish person. Even more selfish than me, and I feel bad for you as a result.
In the Smash Brothers, Wife said (In reference to Melee, but this still applies) "The Halo kids were watching, and adults were watching, and girls were watching. That's the direction I wanted it to go. I wanted MORE from Melee. I didn't want it to stay as it was. I wanted it to EXPLODE into something different. I wanted it to be like Poker or Nascar, where it garners this fanbase that's alittle bigger."
The sad fact is, the quickest way in doing so is to side with Nintendo, because expecting it to be like that without their help is going to be nearly impossible.
This is in no way meant to disrespect Project M, the PMBR, or the fans of it, because I'm a Melee/PM > Smash 4/Brawl guy, and have a group based around it. However, I accept the fact that focusing more on Smash 4 is the most viable option. To top it off, MELEE is included in this, so we should be happy with that.
Hate to see Project M go, but it had to be done.