Sure, there's no way Nintendo will allow even a quarter of the shit you can do in Palworld, but if they did something similar and made a new Mystery Dungeon game or something similar based on the premise they're looking at some major money.
Palworld is what Pokemon Arceus should have been. It's a wet dream for pokefags who wanted an open world game where you actually battle and USE your monsters. Having a glider mon or a ridable mon make your stuff actually matter. They serve a purpose. While Nintendo as such stupid cunts they won't let you use your own mons and have to shoe horn in ugly as fuck ride mons. I'll admit I'm a fanboy of Palworld at this point but it's because it actually moves the monster collecting genre forward. Real time combat, exploration, mons helping you and having a purpose beyond HP bar draining. Actual fucking depth to the world where what you do matters because your mons are a part of your movement and combat skills.
I genuinely hope Palworld inspires a revolution in not only Pokemon style games but all the monster catching games. Imagine Palworld but Digimon. Trying to figure out how the fuck you deal with Skullgreymon dropping a literal nuke on you. Commandramons going full spec ops on your base while you're out exploring. Palworld is jank as fuck but it's jank that makes an impact. I would compare it to PT in terms of it's "genre revolution". It won't do shit to change the big games (like Pokemon or Resident evil for the horror reference) but it can make AA games and indies have an entire new space to explore and a proven market now it sold 1 mil copies in 24 hours. It's a jank game with a lot of issues, but every genre needs a starting point and "Pokemon survival sim" has huge genre potential IF people think there's a market for it.