My app didn't let you search by keyword, only by user. Further it didn't remove watermarks or do anything else. If photographers put their photos on flickr and they care about stealing they usually both watermark and only put relatively low-res versions there and you have to pay them for high res versions.
If flickr provided logs that showed bulk download and further some proof that even with bulk download that it was actually affecting professional photographers and not just a few geeks collecting some pictures they liked then I'd be more inclined to buy into their ban but without that I'm pretty confident the ban had no basis in reality.