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1. Yes, but at the cost of what little good rep they have left.
2. HEll No.
3. Whatever it is, it speaks to your character(Or lack thereof) as an individual.

As a business, they have to look at all of those factors, and weigh them appropriately.

But the people who where responsible for the takedown(NoA) aren't very Business centric/oriented, as you can see by the 'admitted' failure that Was WiiU, and other obvious ongoing shortcomings.

Spoiler

Their forte these days is PR/Damage Control. Wasn't always their Forte, but OH WELL. Guess this is what what Nintendo meant by when they said "Company Restructuring", and why they chose the enforcers. Doesn't bode well at all, and these recent actions, are NOT at all reassuring.

Of course there's no way to know how many sales of the GB original would have been lost with the remake available for free, so here they have to make their best guess.

Except, the dev clearly pointed out that you should really BUY the Original. So the More likely case was that their sales ACTUALLY Went up. Given the circumstances involved, mainly centering around quality of game. All this managed to really proves is.

1. Nintendo got outshined by a few devs.
2. Nintendo really DOES Hate Fans, AND Metroid(And, their Scifi based Franchises).
3. Nintendo Hates it when others make a better product then they do.
4. Even when it doesn't concern them, especially due to the dormancy factor, they will go out of their way to stick it to fans, instead of being cool to them like they used too.
5. Nintendo NEVER apologizes, UNLESS it's to cover their own ass from Bad Publicity or if they will Lose Money.
6. Instead of praising them for their efforts Or even offering them creative positions, they get slapped instead.
7. Nintendo fans seriously still love them THAT Much, even after all that. But there IS a limit, and they keep going precariously close to that limit.

Spoiler

possible that sales would have increased due to gamers heeding the developer's advice. But history suggests that's unlikely.

Sounds, kinda Biased if you ask me. . .

What happens when they're wanting to do a remake of, I don't know, Super Mario Land, but right before they're ready to release it some developer on the Internet releases his own remake...for free?

History shows, that people would buy the legit version afterwards anyway.
Most recent example, kind of, Pokemon Go's tracking feature.
Fact, kind of Ironic. Considering Pokemon Go would have otherwise been seen as a pop app that had no actual ties with the Actual Pokemon Co, and yet it would have driven sales up anyway. THAT, after NOT even directly Advertising links to the upcoming or already in circulation products.
Also, I somehow sense that you meant to apply this to some other game that is about to release, directly relevant to Metriod. But, you know, one that most fans wouldn't want anyway. AND Now, even less. And that's saying something, considering that at least 100,000(1 Million?) users even went as far as actively trying to get such a game Canceled. This recent action here, might just pile on to that number now. Man, Nintendo just KEEPS on making mistakes. Does NOT bode well. . .

what if they go the other route and purchase the game from him and sell it?

You can't buy Free things. But now, the motif to sell such a thing Just Climbed. The very thing they WANTED to avoid. Streisand Effect in motion.
They are essentially telling people "It Can't be done", and We all know what happens when they do things to the effect of that, as we learned from a certain Movie about Trucking.

if you make a re-make of Nintendo game well enough, Nintendo will buy it from you.

Pffft, lol, No.
Also, Wut?

Nintendo has to consider all those factors (and probably others I'm not thinking of).

Except Nintendo has Lizard Brain, when it comes to things of this nature.
And Most of the deciding NoA is Nothing BUT Lizard Brain(IF that).

Some people personally emotionally do not like what Nintendo has done, and others are ok with it.

You meant to say Real fans, and [Let's just say, Marketers cause too many people fall int this category] respectively.

we would do well to acknowledge that what we're dealing with there is our emotional response.

Provided that you are an actual fan, and not one of the 'others' doing damage control(Either Directly or Indirectly).

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