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okay so, let me see if i've got this right

1) palworld is stealing from nintendo
2) stealing from nintendo is always good
3) palworld modified them enough to not be stealing though
4) palworld may have done this through stealing fan creations or ai art, it's not proven yet

thus there's an obvious answer here. it's only Morally Acceptable to play palworld if you use the mod that replaces all your little guys with the pokemon they're based on