Coming from PETA themselves...

"Mario fans: Relax! PETA's game was meant to be tongue-in-cheek, a fun way to call attention to a serious issue, that raccoon dogs are skinned alive for their fur. We wish real-life tanukis could fly or swat enemies away with their tails and escape from those who profit from their skins. You can help them by never buying real fur." - Shakira Croce, PETA's media coordinator

It's just a joke to throw Mario into the mix and use him as a scapegoat, right? All in good fun! Of course, PETA...