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Sadly the game being de-listed was inevitable. The same goes with this eventually.
The proper way of doing this would’ve been to have the code for the game, but use the ROM to get you the art assets. I am certain there are tools available to do this either before the game runs, i.e. have the user extract the data. Or have it at run time, like loading the ROM in an emulator.
It wouldn’t have been easy to do, but it would prevent Nintendo from going after them, since they are not using Nintendo’s assets.
Easier: Stop using trademarked terms (particularly in this case where it’s the original game name) and screenshots of the logo.
It’s a multiplier to being caught, and can still result in a takedown even with original assets (for example, DMCA’s sky which originally used the M name in the title). The further you distance yourself from trademarks/IP the better.
I don’t see an issue with what the dev did here. It’s not easy to make a unique IP, and making a HD port like this is fine. You just need to be smart about it, like the various reverse engineering projects around.
So long as you aren’t distributing someone else’s copy protected assets, music, art, logos, you are fine.
I don’t really care (especially when it’s older than 2 decades), but when a company (this company especially) issues hundreds of takedowns in 1 batch (and they do this multiple times) I don’t think they’re evaluating each one at all let alone for any sort of merit/exemption. They have no real reason to do so, that’s why I’m saying don’t put the target on your back (especially scaling with how much work was put into it).
If anything I’d say I’m at the point where fan content kind of seems too good for companies that treat their users like dirt (and not just those who make fan content). Like that is inevitably going to be someone’s introduction into a series, can this giant company not do better than free-time fan efforts? Well, I guess what I’d really like to see is a game that’s simultaneously a love-letter to a game/genre yet a hate-letter (diss letter?) to the current owner.