[Nasrudith]

Serious question - what is the purpose served in closing that loophole? What damages are averted or gains realized to society?

I agree the current system is silly but I don't think going more restrictive is the answer.

What if anything should be permissible? Would say for instance - you can commission a Master Sword copy or make one and sell it but manufacturing them enmasse be verbotten?

[Spivak]

I'm saying that we should be less restrictive -- that producing and selling fan-art and related merch should not be infringement.

[Nasrudith]

Ah - usually when I see things referred to as a loophole it means "legal as a result of a flaw" unless it is spelled out as a good thing.