Wallace is indeed suing FRED over the only thing he can easily win: copyright of a portion of the cover image (the nameplate).
I though ti wasn't that clear/simple in that copyright for the logo was held by the artist, not Warfrog, and the artist hadn't (yet) made a motion?
A broader lawsuit is untenable for at least one reason, that the other side has copious free/cheap legal support.
John's father is a patent attorney. I doubt that translates to carte-blanche legal advice in all fields, just stuff in the patent/IP/etc space. As much of the debate would seem to sit in contract law, I'd guess that he doesn't have such free/ready help there.