YES!  

I bet my ass Nintendo will pull a SquareEnix on this one and shut this guy up when it's almost ready for release.

Of course, they will. I mean.. they have done this with many other homebrew games and mods. Some of them looked very promising.

The guy said he wont be releasing this. but it looks amazing

Wait, this isn't gonna be released? Someone coulda told me that before I watched the video... Now I'm gonna cry myself to sleep.  

where did he say that he won't be releasing it? I don't see any mention of this on his blog, he even has a tech demo for download in one of the recent posts.

What other homebrew games and mods have Nintendo shut down?  I only know of ones that Square Enix has.  Plenty of Nintendo romhacks and games that use nintendo sprites are out there.  So, what're you talking about?

I guess I misread his video description
Sorry Triforce

Well there are romhacks for Final Fantasy and stuff aswell. But Roms are something completely different (and it was Nintendo who tried to make Emulators (not the roms) illegal. At least that's what I've read in a magazine a couple years ago (it was before I had a PC and before I even knew emulators existed).

I can't really remember the names but there were plenty homebrew projects and mods that were discontinued and the devs claimed that that nintendo pulled the plug. Some of the mods were for the Source Engine and I think some were for Unreal Engine 2 or 3.  But then I imagine that they MIGHT have lied and just... gave up or something and just lied about the reason why it's discontinued.
I mean... there ARE a few Mario games made with the Game Maker, after all... and that Zelda 1 Remake on PC that has an editor.  They didn't get shut down...

But  SE certainly isn't the only company who does this.
Capcom did it with Resident Evil mods and Megaman games, Konami did it with Castlevania, etc.