A lot of people are circulating this quote from Iwata in 2010: "It would not be appropriate if we treated people who did something based on affection for Nintendo, as criminals"
From that same year: https://www.engadget.com/2010-04-02-nintendo-shuts-down-fan-made-pokemon-mmo.html
From that same year: https://www.engadget.com/2010-04-02-nintendo-shuts-down-fan-made-pokemon-mmo.html
And what Iwata said wasn't incorrect, but how it's being wielded now is. Nintendo was not treating people as criminals, and neither are they now. These are all entirely civil matters. That doesn't make it right, but misrepresenting things isn't a great way to further your case
And I say that as one thinks it would be better for everyone if Nintendo were more lenient on matters like this, but let's not pretend the Nintendo of now is materially different to the one that always has been.