It's hard to form a solid stance in this debate, because so much of it revolves around honour and what's "right".
It's rude to steal a graphic someone has worked on by themselves in their free time for their own game. I suspect pretty much everyone feels this way, and I think it's mostly because we can relate more to a single person drawing in their free time for the fun of it than to a faceless artist who was paid to do his job. Plus, there's the fandom, which will cause an uproar about
theft un-agreed use of fan graphics.
In contrast, I don't think many people have issues with using Game Freak's graphics. Why? Well, Nintendo is a huge company who tolerate fangames as long as they don't infringe on Nintendo's business (or give someone else business, i.e. piracy). Nintendo of course are well within their rights to forbid everyone from using graphics from their games, but thus far they haven't. And I think that's nice of them.
On the other hand, let's look at the legality of the thing. Using Nintendo's graphics is illegal, albeit a form of petty theft in the grand scheme of things. However, taking a fan's graphics is in no way illegal, as they've been posted online under no specific license (the words "please do not steal" don't really cut it). I just thought I'd mention that.
It's basically about where you are in the grand scheme. Nintendo tower way above and barely notice the little people, while the little people (us) notice each other very well. It's all about keeping face with your peers, and in this case, it's about not using other little people's work without their permission. Using Nintendo's stuff doesn't feel as bad, because they're so high up we can't connect to them (i.e. it's implied consent unless otherwise noted).
For the record, I'm with the majority: using Nintendo's stuff is fine (as long as they don't specifically forbid it), but using other fans' stuff without permission isn't. As I said, it's all about honour.
^ YES. They closed down fangames before. As someone mentioned, a pokemon MMO.
It strikes me that the MMO makers were probably wanting funds to keep it going, which falls under the category of profit. I'm not at all surprised Nintendo wanted them to cut it out.
If im giving them full credit, and im not making money- I could care less what the original creator thinks.
No, no you couldn't. I care too much about the English language to let that pass.