As was I. It's a pity that they couldn't come to the sort of agreement that Disney has about the Star Wars properties.
Has Disney had to deal with million-dollar Star Wars fan films before? If not, then I don't think their agreement stands as a particularly good example.
In terms of their policy, I think Paramount has a point here. Fan films are fine. Fans paying a million bucks for professionals to make films? That is less like fans doing something as a loving hobby, and more like paying someone to make movies.