Both Nintendo and Pocketpair are Japanese companies and their copyright laws are MUCH more harsh. In fact Japan even lacks concepts of "Fair use"
Add to that the fact that public opinion also matters intensely in Japanese courts (think juries) and that Pokémon is considered a national treasure and well... Things are stacked against Pocketpair
The graphics argument is so weak anyway as Palworld is basically a more watered down ark survival with worse graphics and a pokemon esque design philosophy.
Daedream and Depresso are a tad generic to me tbh. It blends in with the countless similar designs of "blobby goblin fairy" we have seen not only from Pokémon but in fact many other franchises. Reminds me of Sleepmon from digimon. I think you might like Sleepmon
I can see the appeal but usually such designs are salvaged by having them change into more unique forms later.
"Hypersexuality" is the term you're looking for