Copyright needs to be changed for silly crap like this. There is no reason, none, that Squenix, nor any company, can give to legally halt work on a fan project that is making no money, nor will make no money. They can "threaten" to legally do something, but it is all bluster. There is nothing that prevents people from doing fan work like this. Copyright laws and protection need to step into the 21st century.
Besides, Tsunami, Blizzard has already done this. See B.netD
Besides, Tsunami, Blizzard has already done this. See B.netD