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Zelda Online was what it was a very long time ago. Back then it was also just a fangame, not making any profit at all. No one knows exactly why it went from Zelda Online to Graal Online(Stefan denies Nintendo ever contacting them about it). Also, Graal Online never profited until 2001 when Pay to Play was introduced. Bringing the past into this really doesn't make much of a point, as it was a totally different situation back then.
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Bringing it up makes complete sense considering you just said he "claims" they were never contacted by Nintendo. My main point was that i assumed they had copyright issues.