Paying $20 a year for Nintendo Online isn't nearly as bad as naysayers cry about it being. Would you prefer it by the month, like everything, so you can bitch about paying for one more thing a month?
Nintendo reserves its right to protect its IPs. You didn't make Mario, Link, Pikachu/Pokemon .etc so get the fuck over it. Palworld is just some unimaginative piece of shit thought by assholes who still live off of dumb high school ideas such as giving pokemon-like creatures the ability to wield guns.
Whether you're not selling your fan game is not the point, it comes down to infringing on a copyright you knowingly did not make. Copyright Infringement is violating a copyright without the permission of the holder, such as Nintendo's. Armchair lawyers on the internet believe "uhhhhhhh ackshully, as long as I'm not making money, I can have Samus Aran eating out Princess Daisy in my shitty porn visual novel I'm making!"
The Steam Machine, once its out, will be an overpriced box of junk that'll grow obsolete within a few months to a year. Valve fanboys will fall over themselves buying it anyways to pledge their loyalty to Gaben as they do buying Steam games they won't ever play (nor will getting a Steam Machine will help with that, they'll still play the same 3 shitty games).