I don't really get this logic. Why would they want to permanently ban someone paying them money because they also played on TurtleWoW? Isn't the entire argument they're making that TurtleWoW could be hurting their own sales? And given that Blizzard doesn't still distribute their old clients anymore from what I understand, how would you prove that people running the old clients ever even saw the licensing agreement? People can't violate an agreement they never agreed to in the first place. You might be able to make a case for people distributing the client, but in this case that's probably just the same people who ran the server.

Why would they ban people who violate other terms of the EULA? And yet they do.