thats true but in the end they lost the legal battle against Palworld and now they actually have someone who put up nummbers. Palworld 2 could improve even more and Pokemon actually could get in trouble if they stay shit
Palworld even if a future game is good, will still never overtake Pokemon.
People have been saying that for a long time for many other games similar to Pokemon, Pokemon is just way to big of a franchise and still way too popular for anything bad to happen to it and for another game similar to it to overtake it.
Also Pokemon is still massively popular in Japan, and from what I can gather the opinion on Palworld is mixed over there.
However with the success of Palworld and with previous Pokemon games receiving many criticism, this will hopefully allow Game Freak and the Pokemon Company to improve on their games.