We call companies out on their ToS all the time, even if there's no provable harm that has happened in the past. If it's in the contract, they both intend to use it and have the legal right to use it. I'd rather not that that chance, personally.
I appreciate the strange terms being brought to my attention. I don't have time to worry about a company morally and subjectively policing the product I bought from them. The TOS is not a place to be clever and funny and this information has helped inform a decision for me. Just because you happen to not care doesn't mean other don't.
Surely it would be unwise to agree to an outlandish contractual item purely on the grounds that one hasn't seen it invoked yet.
And surely it is a good thing to bring it to the attention of people who aren't likely to read every word of a 20 page contract just to buy a domain name.