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If you violate their agreement, and they find it, they sue you.

Copyright licensing is entirely a legal construct. Some people attempt to make DRM to enforce it, but it's certainly not a requirement.

For example, if you visit my webpage, your computer will download the copyrighted text from it and save it in your cache.

If you (the end user) download and install a font on your machine, or buy an OS with it pre-installed, then you (the end user) are paying the licensing for it.

If you (the website operator) link to a font from your CSS file so end users' browsers will download and render text with it, then you (the website operator) are paying the licensing fees.

That is the most insane thing ive heard. Am i to pay extra for every person passing by the billboard ive designed?! Who thought this was ok?! So i could go broke if my website goes viral for the wrong reasons?! Insanity.

Simple solution, just use an open font!

You probably can't use it for any commercial purpose. Locally they can't really do much about it.