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DonFerrari said:

Still you would need to prove the sales that were made because people wanted to play Mario games on PS4.

Second you would need to prove that dreams have a "content creating tool using IP" from Nintendo. Because it doesn't, people can create whatever they want with the tool, but there isn't any Nintendo IP on the tool, if there was they could ask for sanction against sony itself.

Third this type of situation would most likely fall under fair use as it is fan made content not for profit and not copying the content but recreating it.

See below..

HollyGamer said:

So if someone have Lego toys and build Mario world inside Lego and let children  play their Lego by free,  does that also allow Nintendo to send cease and decease?  

You both don't understand the reasons as to why Nintendo are doing these take downs. If it benefits Nintendo than they would most likely keep it up. however its not benefiting them at all.. and that's the whole reason these things play out like they do. Nintendo is not a charity for PS nor its userbase, they know it, and so does Sony. Same can also be said if the shoe was on the other foot. Also Nintendo doesn't need free advertisement from rival systems and games to sell games.

The best example I can give you both is this. 

What if Sony hired a bunch of professional game designers to create Mario games in Dreams which turn out to be quite good? Sony can claim them as fan made to avoid copy right infringements but does that make it right? PS4 owners get to play Mario made games while Nintendo owners cannot. If fan made projects like these happen more frequently, than what's stopping MS from doing the same and creating Project Spark 2, hiring a bunch of professional game designers and recreating games like Ratchet and Clank and using it to promote Project Spark 2 which promotes the Xbox eco-system which profits MS.

This is why companies take notice because they are not as stupid as you like to think. Nintendo gain nothing from Mario made games in Dreams while PS4 gains the momentum and making Dreams more attractive to customers. Its not about if we have proof of sales, its about the logic behind the whole scenario. If Sony wanted this content to remain than maybe they need to release Dreams on the Switch and maybe Nintendo wont care as much, but like both Sony and Nintendo, they don't like sharing with each other. 

Dreams is a retail priced game which makes Sony money, and users making Nintendo games in Dreams only increases the chances of Dreams selling more copies which profits Sony at the end of the day while Nintendo profits nothing. Its the same thing if someone made a Mario game that was extremely bad in Dreams hurting the Mario brand image. That also affects Nintendo.

Game creative tools are a dangerous thing to developers as they can lead to hurting brand images to profiting other brands not associated with the original owners.