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Translation is considered legitimate, and so is making adaptations of public domain works. You can call it fanfiction all you want, but this isn't fanfiction. Fanfiction is derivative work based on copyrighted material without permission.
This is certainly a derivative work, but it's not under copyright, and therefore there's no need to ask permission. When people get in trouble for fanfiction, it's for copyright violation, just as if someone had tried to publish an unauthorized translation. No one gets sued for adapting public domain works.
Authorized derivative works based on copyrighted material aren't fanfiction, and this is no different. It's true there is no authorization given, but as it is public domain, no permission is needed, and indeed there isn't even anyone who could give permission.
I don't know if this will be a good book or not, but even if it isn't good, that doesn't make it fanfiction.
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