He essentially defrauded $8M from media streaming companies, if the ToS violation is the easiest path for the companies to have him quite rightfully convicted of what is indisputably criminal behaviour then I have zero qualms about that.

Does this behaviour open the door for ToS being abused? I have no legal expertise, but I would expect in cases like this that everyone would rationally come to the conclusion that the defendant's behaviour was wrong and unethical and the ToS just made it easy for the plaintiffs to point out to the court that they do in fact explicitly forbid such activities, making it an open and shut case.

From headlines I've seen of around ToS enforcement over the decades, courts don't seem to just view them the same as a physically signed legal agreement and will not enforce outrageous clauses in them.