Which is easier? Fully translating a game as best you can, and distributing it without getting in legal troubles? Or partially translating it enough to catch the owners attention and get slapped with a cease and desist, while showing them that there's still interest in this game over here, and possible getting an actual localization done?
They announce what they're doing because they want the game to be released. We already have word that the majority of the translation is done, it's just Square sitting on their butts not wanting to release it for some reason. The more attention the game gets, the better, and something to which Square has to respond with legal action like a Cease and Desist is attention that Square has to give.
How many such projects will Square have to shut down before they realize that this game has a market?