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Nintendo filed a lawsuit against Pocketpair, Inc.
(www.nintendo.co.jp)
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TemTem is probably just further down on the to-sue list.
I agree, and want to add that it could also be that PalWorld is a bigger target because it is kinda like a Mickey Mouse horror film: it runs counter to the brand of Pokemon to have a game where you shoot them with heavy weaponry.
I'm not sure why. TemTem, and a number of smaller projects like it, are basically exact copies of Pokemon and have been around far longer, some with succesfull kickstarter campaigns.
I remember Nintendo being RUTHLESS when people over at GBATemp tried making a smash bros clone for the NDS... For free.