So we all agree that we miss the Mario/Nintendo plushies, that's VERY clear. But I might have a solution to this whole thing.
The problem was Nintendo didn't want situations and characters like Jeffy associated with Nintendo or the Mario brand for a variety of reasons. Another situation, is that SML also needs to make money. So how about Nintendo lifts the cease and desist *if* SML made another channel that featured the plushies that must be 100% family-friendly only?
The videos can feature the Nintendo characters and some of the regular SML puppets like Brookyln Guy, Goodman, Penelope, and Chef Peepee, but they CANNOT have characters like Jeffy, Black Yoshi, or Jackie Chu; characters consider offensive and inappropriate for younger viewers. The video can also not have adult situations, sexual innuendo and themes, swearing of any kind, extreme violence, basically anything not for a kid. The comedy can be on the level of SpongeBob and Animaniacs (kids comedy but stuff that flies over their heads that adults will get). Best part is that at the same time, SML can make the videos they want but with the puppets.
SML can keep making videos with the plushies for those who love them and videos with the puppets (to bring some sort of income and whatnot), Nintendo will be pleased and lift the cease and desist provided they follow those rules above, everybody wins, problem solved.
Thougths?