Fair point, but that's no guarantee that something as high profile as a Hugo award nomination wouldn't raise flags with the legal team.
Edited to add: Having seen the cost and disruption of litigation from the lawyer's side, I may be more cautious than typical on such matters. But as the article states, JKR still holds the copyright, and even if statements like that in the paper could be used to argue for a safe harbor, I don't think that's a slam dunk response that would automatically get one out of the lawsuit with a minimal expenditure in time and money. Plus ,something like being nominated for a Hugo for Best Novel may still be non-commercial activity (there's no monetary prize), but it's getting closer to the line. [This is still not legal advice.]
This year I'm a supporting member of WorldCon for the first time, and I noticed that the Hugo's have a category for Best Fan Writer ("Any person whose writing has appeared in semiprozines or fanzines or in generally available electronic media during 2010."). I do believe Harry Potter and the Methods of Rationality counts, and I plan on nominating it. Even making it onto the ballot will probably expose it to a wider audience. Is anyone else here a WorldCon member and thinking of nominating MoR?