Even the staunchest Disney fans don't rally behind Disney when one of their "trademarks gets abused".
So, I get where you're coming from, but I also have some second-hand exposure here because my wife is a trademark agent (and has to put up with all my inane hypotheticals about trademarks) - while you can call it a "business-on business crime", the question of fact revolves around whether an average consumer would get confused.
As a consumer, I'd feel pretty miffed about being misled into purchasing a product due to trademark confusion.
Palword vs Nintendo is not a trademark case but a patent one. People in gaming are notably very much not in love of patents restricting what games can or can't do.