As far as gameplay goes, palworld is nothing like Pokemon. Sure, you capture monsters in an open field, but its combat is not turn based and it has a large base building emphasis, for instance.

Now, the monster design in pal world is (I think intentionally) very close to Pokemon’s, while also giving them guns, which I suspect is what triggered Nintendo’s action. You can find plenty of Pokemon likes that match its gameplay much closer (cassette beast, tented) that haven’t caused Nintendo’s ire.

I’m honestly surprised Nintendo didn’t go after the “looks” of the pals.

Like you said besides the “balls” or “spheres” used for capture it’s a completely different game.

Sure it’s a “similar” genre, but they’re also targeting a different audience altogether.

O well guess the lawyers can duke it out in the courts.