This does put SE in an interesting spot. They've been maintaining a "don't ask don't tell" stance for years. They've basically been fine with parsers but have been trying to use the ToS to discourage player harassment or abuse without the need of moderating it. However, ToS is a set of rules and rules are meant to be followed.

When the streamer was mass reported, it wasn't wrong. It was a breach of rules. They can't ignore that many obvious reports or people will ask why they don't uphold their own rules. So they had to take action.

This sets a precedent. Players now know that they can mass report streamers to get them banned and will do so. For a start that will affect streaming which is a form of advertising and publicity for SE. Secondly players will wonder what other sources they can mass report to get players banned. Anything that can be linked to a player account is technically proof, fflogs being an example.

Most likely it'll just blow over, but there's a chance it might put them in a spot where they have to take their heads out of the sand and either completely ban mods, logs and addons and take measures to block them, or realize they have no choice but to give some of them the green light because they'd lose too many players.