If there is a C&D, then that increases the chance of Nintendo bringing it to the US officially.

As is the case with fansubs, the groups can get a C&D order from a local company, even if the show hasn't yet been licensed. Usually if it does happen, the show will be licensed very soon to be released.

This is a little different from the Crono Trigger 3D project and possibly the Bid for Power mod for Quake 3, which were taking properties already existing and licensed in the US and modifying them.

While Mother 3 belongs to Nintendo and they have every legal right to C&D these guys, they currently do not pose a threat to potential sales of the game--which is not coming out (which was the case of Seiken Densetsu 3, probably one of the most popular fanslations). If they do actually find and send out the order, I think that is a fairly good sign of it coming out in English officially, though not set-in-stone.