To clarify a bit, the whole debacle basically came down to how iffy the copyright/trademark was of Towergirls in the first place.
Basically the origins of the series, if I understand right, was a 4-chan "hypothetical" board/discussion that described various princesses and their stats/items, and part of the appeal was that 'anyone' could be a princess (hence why we have stuff like Dragon princess, where instead of the princess being kidnapped by the dragon, it is the dragon). The whole thing was fun and played with tropes and whatever, all good, and Towerfag saw potential to make a game as he saw them.
So far nothing bad, but the original Towergirls were surprisingly not porn, it was a cute idea created by someone and added onto by others and Towerfag came up with the idea to make a porn game based off this cute idea... which became a problem when the original creator of Towergirls found out/wanted to make their own 'clean' Towergirls game. So you have the original maker of a concept/series wanting to make a legit good/non-porn game of something they started, only to find out that a competetor is not only making something with the same name as your creation but also lewding it and asking for money.
It's kinda like the reason why there's no true SCP game for sale: as soon as you claim ownership of a concept that's been added onto/started by someone a long time ago, there is an inherent risk of the creator of said content to say that you're taking their intellectual property.
So less "damn people are greedy" and more "I came up with this clean wholesome idea and now you've gone and made porn of it where you steal panties/buy princesses off the slave market, could you... not?", hence the rebranding and redesigns. As far as I can tell it's still the same game, but now we have Ricky Rat instead of Mickey Mouse.
