I think this is pretty shitty of Square. They aren't currently making any money on the chrono serious, if they are it's a drop in a bucket to someone that big. If they are planning a sequel, this isn't going to hurt sales, the fans will still buy and play their game just as much, I imagine a fan sequel will only help revive interest if anything.
but here is what I think is really shitty. Fans have been working and dedicating their time to this project since 2004, they were 98% of the way finished, days before the release date, and Square chooses this time to tell them NO YOU CAN'T DO IT! Thats not protecting your interest, thats being an asshat. Protecting your interest would have been stopping it right away, at 1% completion. Hey, that's our stuff, you need to stop. You can't tell me with all the copyright lawyers they have running around they just now noticed this. The only thing I can think of is that they purposefully waited till the last minute to crush the dreams of the fans that have been working on this. Thanks Square.