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Lack o' Vision ... er ... Activision, doesn't have anything to do with King's Quest other than acquiring the company that acquired the company that was bought out by the company that made the game(s) 15-25 years ago. They ("they" is used loosely here) haven't released a KQ game since 1995 (I don't count VIII). If they were smart (which they appear not to be) they would bless this fan project that would/could/might rekindle some interest in products they have collecting dust.
While it's easy to discount this whole thing as corporate mentality/stupidity, Activision isn't stupid. They've managed to surge ahead during a year where most of their contemporaries have gone out of business. So give them some credit. Let's play devil's advocate for a minute and see it from their point of view.
Sure, they haven't done anything with the King's Quest IP since they aquired it... but who's to say they won't do it some day? And if they ever do, they will want to do everything in their marketing power to associate the name "King's Quest" with Activision (or Sierra) and not some freeware company. By letting fan projects live now, it could potentially hurt them in the future.
I know that this is a verrry hypothetical (and unlikely) scenerio, but a company stays alive by thinking into the future and planning for every eventuality. I'm sure they looked at this situation from every angle to determine if it can hurt them in any way, however small.
I have nothing but sympathy for the TSL team and I can't imagine what they must be going through, but I can understand why Activision did it.