But this is intellectual gymnastics though, because the GPL cover the redistribution of the code, which is the topic here.
If I commercialize GPL code and say in my TOS that you cannot redistribute the code <or something bad will happen>, then I'm adding a restriction to the code redistribution, and it doesn't matter what kind of “bad thing” it is, as the GPL says “any further restrictions”.
TOS applies to the commercial service, not to GPL code. You can do whatever you want with the code within the bounds of the GPL. But the GPL doesn't magically obligate me to continue doing business with you. I can't sue you for re-distributing GPL code. But you can't make me provide you new versions of the software after you've breeched our agreement.
> TOS applies to the commercial service, not to GPL code.
Come on, the TOS almost litterally say “you shall not re-distribute the code or we terminate you” and now you're arguing that the TOS isn't about GPL code? This is Olympic level gymnastic at play here.
They are terminated the additional services they would have otherwise provided you. They can't terminate the GPL. If you find this difficult to understand maybe ask a lawyer.
If I commercialize GPL code and say in my TOS that you cannot redistribute the code <or something bad will happen>, then I'm adding a restriction to the code redistribution, and it doesn't matter what kind of “bad thing” it is, as the GPL says “any further restrictions”.