“Other than the completely unreasonable thing, they seemed pretty reasonable”.
I mean he's not being a complete asshole in the discussion here[1], but nuking the entire customer's account for a ToS violation on one specific product still isn't a reasonable move. Yes Google and Amazon do it routinely, but if you're not a trillion dollar monopoly and you care about your business' reputation, you shouldn't behave like those.
[1] CEOs behaving like assholes in Twitter discussions isn't supposed to be the norm.