I don’t see Nintendo/Game Freak doing something about Palword. Due to Palworld's first trailer release two years ago. So if Nintendo/Game Freak was going to do something about Palworld. They had two years to do it.
There's also the matter that they aped BOTWs sound library in a way that crosses from "inspired" to "plagiarism", but that's easier to fix.
The argument for IP stealing wouldn't be so much the designs alone, but the intention. The "Pokemon with Guns" thing might be used as evidence that they were deliberately copying Pokemon's designs and tweaking them a bit. That's the same difference ad between reading the same source materials and copying your homework while replacing a few words.
Is it really fun if you like those sorts of games? For sure. My friends and I are having a blast.
The worst thing I can say about it is that it feels almost useless to build structures. I made a 2x2 house in my base and it's a waste of space. Maybe it'll matter more when we're level 50 but now....just put your bed on a foundation and give it a roof