Not that I'd want to do actual development that way, but we do it for iOS CI.
install, use and run up to two (2) additional copies or instances of the Apple Software within virtual operating system environments on each Mac Computer you own or control that is already running the Apple Software, for purposes of: (a) software development; (b) testing during software development; (c) using OS X Server; or (d) personal, non-commercial use.
http://www.apple.com/legal/sla/docs/OSX1082.pdf
B.2.iii
Sure, the odds of Apple coming after you are low. But that doesn't mean that it's any less of a violation of the license agreement that you agree to when installing the software. AppGratis also thought they were in the clear with their ToS issue.
http://www.law.cornell.edu/uscode/text
Here are the ones that it is OK to break:
(Most of the rest)
TL;DR use your common sense
A ToS, on the other hand, lays out terms for the ongoing use of a service. If I violate the ToS, the service provider is within their rights to decline to provide me service. They're within their rights to do that anyway for nearly any reason they feel like, because this is an ongoing relationship and I don't have them enslaved. Beyond that, they could also sue, at which point things get a bit murky.
There's nothing wrong with breaking a EULA, and their legal enforceability is worrying. There's also nothing wrong with a service provider terminating service when a user breaks a ToS, which is what happened here.
There's no inconsistency.
Luckily they're not legally enforceable (at least in the U.S.) under many circumstances, though you may not want to take it to court since you could get unlucky: http://en.wikipedia.org/wiki/End-user_license_agreement#Enfo...
BTW, I'm sure all Apple Boot Camp and Parallels users pay the $250 Microsoft license, NOT.
If anyone develops for iPhone without Xcode I'd love to hear it. I'd switch in a second if something could provide even half the functionality as long as it had half the usability issues.