I have such mixed feelings about this product.
On one hand it's an obvious rip off and that's really lame and companies should be dissuaded from doing that.
On the other hand these guys wanted to do some silly stuff that they knew Nintendo would never do (eg. what if you could shoot guns at Pokemon?) and so they made their own game to scratch that itch. That's cool.
I dunno I wouldn't feel bad about it if it was like a free fair use fan game, but seems worse as a for-profit product that's competing with Nintendo.
I don't really see the issue with rip offs, as long as it's better. In fact it's a prime opportunity to innovate on an existing product. Tons of stuff we use nowadays are rip offs. Oreos, Android OS, Chief Wiggums...
Main issue is we can never argue what's "better" 99% of the time, especially while in the heat of the conversation. And in this case Palword isn't necessarily "better" unless you utterly hate the core loop of Pokemon as a turned based monster raising battler.
Which apparently many people do. But we're now arguing against game genres, not competitors. Comparing Pokemon to Palworld makes about as much sense as comparing Skyrim to Breath of the Wild. They are superfically open world adventure games with a large area to explore and basic combat, but the lore, battle loop, aesthetic, narrative feel, and a dozen other factors make them night and day. You will very likely not like BOTW at all if you go in expecting Skyrim and vice versa.
Realistically this game doesn't compete with anything Nintendo puts out, because they'd never in a million years make a game with a similar gameplay loop (shoot Xmon, catch/kill, put into forced labour, repeat)