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I think this is ridiculous... Town is a one-shot game from Gear Project, it's not a franchise that is going to carry them and pay for future games.If anyone's sabotaging anything, it's Game Freak sabotaging Pokemon so they can just move on to something different; look at Town and then SwSh, and tell me which one they seem more excited about making. There's no way Nintendo would let TPC sabotage the main series so more people would play mobile games when they own 1/3+ of TPC and with mainline Pokemon being very important to their handheld sales.
That "excitement" is because some of their developers got to have fun in a sandbox for a little bit. The fact that the game looks "better" than Sword and Shield? Is because it's smaller so they had more time to focus on improving smaller areas.
They're also in the process of handing the torch of Pokemon down to the newer staff, so that isn't a "We're more excited about this." thing, that's a "Okay you guys are gonna be doing this from now on so the rest of us are gonna go play over here and make something ourselves while you work on that."It's clear that GF favors Town over Sword and Shield, considering that most of GF's veteran staff is working on the former. They might essentially want to end Pokemon entirely so that they can instead completely focus on their Gear Project.
I really really really have to emphasize that Gear Project IS NOT REPLACING POKEMON. It's a sandbox for people to unwind from working on the series and develop their skills. It's not a replacement! It's a play room!