This would be a much easier decision if we sold a discrete product. A grocery store or Amazon.com can deny someone service and then they can go shop somewhere else. No big deal. Our users store their most important business data with us for years. How can our legitimate users trust us if they think they might wake up one day and be banned?
Thanks for the comment, this is definitely an interesting discussion.
By the way, I can tell you that I personally wouldn't have a problem with someone using the software for something illegal but not necessarily unethical (like selling drugs). The problem is that as soon as they tell you they're doing that, you're effectively assisting them in the illegal activity which makes me a criminal. That's the main reason why we have to take action when someone tells us they're using the CRM to do something illegal (not that it's ever happened).