This seems like biblical levels of silly. Treating a slave creature well before you hawk it into the arena to fight for you feels a little morally nebulous.

It's a fun game, and laughing about the pals is totally part of it. The penguins special move is getting blasted out of a bazooka, and immediately passing out. It's hilarious, but if you think about it, it's really not much different from Ash Catchem tossing his pokemon into cage fighting rings. Palworld is honest about it, and injects humor that clearly makes you feel uncomfortable.