Well I can't help but side with Nintendo on this one. While that trailer didn't look too bad, I've still been saying for some time now that there's nothing worse for a franchise then it's fans, specifically fan tributes. I think their biggest mistake was submitting it to actual film festivals and movie theatres, by doing that it could've looked, from Nintendo's stand point, that they were trying to profit from this film.
I know my biggest fear, if I were to create something that became a huge franchise, would be the fans fucking it up with their own twisted, misguided interpretations.