Nobody gives a flying fuck whether the terms are legally accurate. This distinction is entirely already covered in the existing terms of service.

People are annoyed that they can pay for something (sometimes an essential identity service), be arbitrarily denied it, and have no recourse other than maybe getting lucky by writing a complaint post that gets traction and read by some human who can tell the abuse department they've fricked it.

Companies shouldn't be able to shift the burden of the negative aspects of running an online service (dealing with abuse) entirely onto society by offering no meaningful appeal process. Regulation isn't an appealing option, but companies have full well demonstrated that they aren't going to handle these cases unless forced to.