It only takes an overzealous GM banning someone with followers to cause heavy damage to games like these.
If there was a twitch streamer that was incredibly popular who get banned from playing FFXIV for telling another player to pick it up, or telling an off color joke to a friend but mispoke it in the wrong chat, and GMs banned their account over someoen taking offense, that is going to hurt the brand hard.
Again, I think people are fine with more GM intervention on certain issues, but I think the issue is the broadness and vague language of the TOS opens it up to abuse by those who are either perpetually offended or those with an axe to grind against others. We should, as players, have the right to critique and criticize how other players play the game. This doesnt mean slinging ad-hominem attacks or harassing and going out of your way to make their life hell, but we should have the ability to tell players "Hey, the way you play isnt great. It slows everything down and makes it more difficult for other players. You really should learn to play better." But under the new ToS, that can be construed as an offense worth GM intervention. Thats an issue. Well one of them.