"damning evidence that Palworld almost directly ripped off several 3D models from Nintendo's Pokémon games"
Do you have a source on this? Because the original polygon comparisons made on Twitter have been debunked as doctored images and the original poster confirmed this too (screenshot compilation on Reddit->Palworld->PSA user who claimed that Palworld assets are-).
Also, keep in mind Pokémon designs aren't original. They are based on multiple mythologies and the animal kingdom, these creatures include:
- Eevee & Cremis are based on Carbuncles from Chilean mythology,
- Lucario & Anubis are based on... Anubis, from Egyptian mythology,
- Galarian Meowth & Grintale are based on the Cheshire Cat,
- The Lati twins & Jetragon are based on the amount of jet dragons in media,
- Lycanroc & Direhowl are based on a Unity model and both are slightly modified,
I can go on, but the general jist is Palworld definitely took inspiration from some Pokémon models (Verdash & Cinderace), however they did not outright copy them. Most of these comparisons like Orserk & Garchomp or Astegon & Mega Aggron or Empaca & Empolean need you to squint really hard to see any similarities.
This comment could be its own article, but the truth of the matter is far too many journalists reported on knee-jerk claims made by Twitter birds without doing any research. Two Pair's own blogs transparently lays out their method of development is buying Unity assets and changing them slightly, they do not rely on AI and they do not outright thieve.
This subject is so badly covered by journalists it's its own echo-chamber. Sure, Two Pair definitely took liberties in marketing towards disheartened Pokémon fans and mimicking successful design, but they aren't con artists like many claim they are. Nintendo knows they can't sue Palworld for the creature designs because Pokémon don't own ancient mythology (although they would if they could).