Square Soft Trying to Take a Dig at Nintendo?

In Fester's Quest Bosses from Blaster Master appear as just regular enemies. The link thing doesn't make any sense to me. Is it Legend of Zelda and Final Fantasy? Why is Square Soft trying to take a dig at Nintendo? I don't think I would have to assume that one's less of a dig and more of like just they're on the NES now let's say a fantasy game. Maybe. But the funny thing is before the show we were sort of just briefed on what some stuff was going to be. We talked about Super Mario RPG specifically and we were conflicted on if it was Samus or Link sleeping in that game. They're both not.