Sonic Fan Remix wasn't C&D'd. It got Sega's attention sure, and no doubt was a strong factor in changing episode 2's visuals, but it was Pelikan & Mercury that only had time to program the original demo. To my knowledge, Streets of Rage Remake is the only Sega fan game that's been shut down. EDIT: At the end of the day, the thing with fan games is unless there's an explicit statement from the company e.g. Microsoft's Game Content Usage Rules you're always going to be at their mercy / discretion. All you can do really is take a calculated risk and hope for the best.