It's just so surprisingly tone deaf when things like this are done by companies that exist purely within the goodwill of their customers. Nothing that funko brings to the table has inherent value. If they have any world outlook other than to love their customers as much as they can, then they will fail in a time measured in quarters.

Just gonna point out that the Nintendo going after fanworks bit is a tad blown out of proportion, especially online. They're definitely known for being way too heavy handed (especially compared to the likes of Sega), but they're not exactly going after every fan project they see on the internet. Large sites whose entire purpose is to host fan games and mods for the Mario, Zelda, Pokemon, etc series have been up for decades without any issues, and most mods and homebrew projects for consoles older than the Wii U or Switch are going fine.

Unless a project is going viral in the media, raking up in a significant amount of money via a paywall or is directly competing with a current game, the chances of it getting shut down are incredibly low.