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I view the TOS as part of the client contract. It sets out what is and isn't allowed, and can be used (as you said) in cases of dispute.
The client in question above was allowed, but the person had previously been hosted with a big-name company that said that they didn't want that content on their servers. Either their support techs didn't understand what the content was, or they just were feeling stupid that day. At any rate, we got their business, they're happier, we're happier - it worked out fine. I just haven't gotten any truly outre questions about the client agreement (weirdness just doesn't seem to like me as much), though other people have mentioned some oddball client questions that they've gotten.
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☷ Lesli Schauf, TLM Network
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