As of early 2011, however, the critical sales window has long expired and, aside from the impossibility of stopping the circulation of the leaked CE, it might be even some publicity for CTDS. Moreover, Squenix's current situation (see the disastrous launch of Final Fantasy XIV, or the little that has come from the acquisition of Eidos so far) means that they have bigger problems at hand than striking a second time against a fangame of a franchise that's currently unlikely to receive a future installment, further alienating the fanbase in such a delicate period for the company.
Of course, in case the C&D letter was fake [there are good motivations for both theories, so I don't take sides], it would have been all a Batman Gambit to try people into making this reasoning :P
Marle kissed him in the ending to the original game, and she is a princess...