I don't like this muddling between ToS and rules regarding disciplinary action. I get why you're linking the two, but one is in regards to everything in and out of the game concerning xiv copyrighted content, and the other declares how and why anyone will be punished for their behavior inside of the game.
If these very rules were in the ToS instead then I wouldn't be putting myself at risk here by criticizing SE, or anywhere my account could be linked to my arguments. I'm completely okay with "we reserve the right to terminate your account for any reason". That's not vague at all. I'd be more worried for them if they didn't have such a clause. That's entirely separate from "and these are the rules we ask you to follow while playing". It's also another matter entirely that these changes happen concerning players who've been signed up since 1.0
I've been posting since I believe around page 45, and I read the entire thread before I did. What you claim might be present in a small number of posts. I believe someone posted along the lines of "this game is all I care about and I can't handle this". However that is among the worst I can think of, and doesn't quite compare to what you describe.
Additionally it's unfair to describe current discussion of the topic based on only the very beginnings of it.
Describing events believed that "will happen" I think is far less of a controversy than you put it. No one is saying it's going to be rampant all over the place in every direction with cats and dogs falling out of the sky. They're saying that humans make mistakes, and it's only natural that a GM make a mistake whether it was after or before all of this, and that what's important I'd that we're able to correct those mistakes as much as possible and prevent as many of then as we can.
The argument is that these changes not only bring much more room for there to be mistakes, but for many of those mistakes to never see correction.
The sky will eventually fall. It'll be many billions of years from now, but I can assure you that it will happen. There's no fear mongering in that statement. It's simply a fact that none of us will ever see. The sun will explode one day and destroy the Earth. Just the same as if you leave a wad of cash somewhere, it's going to be taken eventually, whether it was as a bad deed or a good deed.
It's much more unreasonable to state that it'll never happen. Once you accept that it will happen, the question then becomes "what do we do about it?", and the answer isn't this.