Not what I intended at all. In fact, as I understand it the OGL and SRD remove anything in 3rd edition from the public domain. My original point was that changing something like a dryad away from its generally understood form creates a new intellectual property that can't be challenged, unlike a creature that is a simple translation of shared mythology.
D&D did not begin with 3rd edition, and previous editions drew more heavily on world mythology, or IP that neither TSR or WOTC owned. Hence, changing halflings into pint-sized gypsies distanced them from the IP of the Tolkien estate. Making D&D Gnomes into slender bards who don't wear pointy hats effectively distanced them from Wil Huygen's portrayal of Gnomes.
Well, they didn't invent dryads, dragons, elves, gnomes, orcs, goblins, etc. Therefore it makes sense from a business point of view for them to change those things into forms different from their classic ones, so those distinctive forms can copyrighted.
The resulting tree-babe still looks stupid.