Just because they make some lawyer jokes in-between doesn't mean the actual legal parts are somehow void.
Also:
Quote:
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(...) we created this Fan Art and Fan Site Policy (called the “Policy” in this document) regarding the do’s and don’ts for: (i) your artwork, drawings, photographs, sketches, illustrations, and other intellectual property based on the Epic IP (called “Fan Art” in this document); and (ii) personal, non-commercial websites and mobile apps, created by you, that are freely accessible to the public and that are dedicated to promoting Epic’s games (called “Fan Sites” in this document).
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Fan games would fall under the "Fan Art" definition which is used throughout the page.
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