*current wearing silly hat*ZUN has woken up and realized how far it his franhcise has evolved without him. It makes sense; last I checked he works for a game developing company and makes games in his free time between drinks, he probably doesn't have much time to keep a pulse on his creation/monster.
*puts serious hat on*Or he might be afraid that by having Touhou fangames appear on major platforms such as the Apple Store and XBLA he'll somehow lose control of his rights. I dunno, it is hard to judge the motivation here.
This is a valid point, but I think he's only considering the doujin makers in his home country when he made this rule. Leaving this point aside, there's a possible misundering here. Please correct me if i'm wrong, but has our Kannushi even acknowledged his western fans? It's possible he hasn't even considered his western market when making these rules. Maybe he's not against westerners making works using his franchise and using their main channels of distribution; maybe he hasn't even thought about us or considered the possibility of us creating anything of worth.
One of the things that makes touhou great is the artistic freedom, ZUN has created a framework for all that we love. I'm concerned these rules might break what makes touhou great.