Indeed, and it isn't that one thing that holed them below the waterline. But it's a factor that helped push them outside the fan film arena and into independent-but-unlicenced Star Trek film. They were paying the actors too, if memory serves. And of course having them directed by a paid professional director, and calling it anything other than a fan film.
IMO regardless of axanar, CBS was going to come down on fan films using professional actors and especially former trek actors. That situation was not going to be allowed to continue.