That's a joke.
A email telling them to remove the word donate within 5 days or their account would be closed, I would totally get that. Shutting down new orders until the verbiage is changed, same thing.
But to say that this is a reasonable action, I just don't see it. There was clearly no deception going on. While it clearly does violate the TOS, the use of donate in this context (a voluntary payment above the minimum that gives no additional benefit) is perfectly reasonable.
I'm not saying that Google isn't within their rights to do this. The author should have been more careful, fine (although I could see myself making the exact same mistake). But this still just hits me wrong. Even if the takeaway is just "if you make a completely innocent mistake that hurts no one, Paypal will alert you while Google will close your account with no recourse," that's STILL plenty of reason to choose Paypal. Who doesn't make innocent mistakes?