I wonder if this download link to Prism that I came across is legit...
Interesting.... That's another reason shutting this stuff down bothers me actually, that I hadn't really given much thought to before: it puts the fans at risk. Fans are going to seek this stuff out regardless. That can't be stopped, no matter how much companies like TPCi and Nintendo might like it to. However, forcing it deeper underground means the fans who are searching for stuff like this are easier to take advantage of it, because it's harder to talk about yourself being the "official developers" or whatever of the ROM-hack, since that kind of talk makes it more likely for you to get shut down. Thus, it's easier for people to disguise viruses and malware as ROM-hack links since they can't be talked about as openly, which definitely isn't a good thing at all.
ROM-hacks are going to get developed regardless and they're going to be released in some form or another and seeked out and played regardless of what is done. But the more Nintendo forces developers to stay on the down-low, the easier it is for malicious actors to take advantage of that, because staying on the down-low blurs the line between malicious actors and legitimate fans just trying to have fun and show their love of the series in their own way, with the methods they have to set themselves apart and make it clear that there's nothing shady going on and it's a real thing being the exact same type of thing that risk getting them shut-down.
So yeah, thinking about it like that, in combination with the whole hurting Nintendo's profits or whatever and brand recognition stuff being tenuous excuses with the history of Pokemon ROM-hacks, I can't really be on Nintendo's side here.