That is true, that is their right.
But in my opinion, the consumer has a right to criticize those rules as well. For Japan, these rules probably make complete sense, although I am not knowledgeable enough about Japanese culture to confirm that. I am saying that what constitutes a generally agreeable offense will widely differ between cultures, which wouldn't be a problem in a very homogenized datacentre like JP, might give out problems in a datacentre with a very broad sense of cultures like EU. I feel that these corrections that most likely are completely suitable for Japanese culture can also be easier used for malice, which can lead to more work for GMs or ToS being used as a malicious tool for bad actors.
For example, the Nordic and the Mediterranean cultures can be very different, and therefore a lot of misunderstandings may happen between them that can lead to major offense on one side or another. Anecdotally I have been on both sides of those kinds of cultural differences. Thankfully people are usually able to talk things out since people are for the most part well-meaning and understanding when these things occur. Therefore things should work out how they did before. I don't think it is that probable, that people use the CoC as a tool on a larger scale and most likely we'll keep on trucking as is.
Like I said before since I haven't had any reprimands for my behaviour, I most likely won't receive more after these clarifications either. The rules just feel too specific for me for how nuanced the topic can be. I can also be very wrong on how normal these kinds of ToS/CoC are since I am not an expert and I haven't looked at the rules of other games that specifically, so I could be very wrong on how specific the FFXIV CoC is.