I feel like there's a disconnect somewhere, maybe on my end since I'm the one who is confused.
But I don't understand the exclusion of artist alleys as that's exactly where you see fangames and other fanworks today. Yes the west focuses on individual fanart prints but that doesn't mean that self made books, music cds, games, and toys don't exist. Every artist's alley I've been to has been a mini comiket, minus having porn everywhere.
Playing Danmaku!! at conventions over the past two years I have literally asked hundreds of convention goers if they know what Touhou is and freaking all of them do. Touhou's reputation proceeds it, mostly because of the massive fanwork community.
Then if what Drake says is is true, I could call up the convention organisers and create a Touhou event, which any person can walk into, and selling stuff there would be okay? I can see this annoying the organisers actually, "this is what the dealer's room/artist's alley is for", but I know the tabletop game rooms do sales sometimes.
If the entire point is to sell in the places where IP laws get turned a blind eye to, I don't think anyone has anything to worry about.
I dunno, this thread took a weird turn but I feel like the only person who thinks so.