It's such an obviously bad policy, it's mind-boggling that they thought this was a good idea. It just breeds paranoia and mistrust, especially when people are already a bit paranoid about silent model quantification for cost cutting reasons.

Its not pranoia when entity you are dealing with cant be trusted and will do everything to abuse your trust.

What's the alternative? Not release the model at all?

"Make the guardrails better" isn't very hard and probably not worth the effort.

The alternative is to be explicit when you nerf, so users know what they are working with.

I guess people would just game the system and find ways around these guardrails.

They have enough info on you and your sessions to eventually catch you, label you as bad faith actor and ban you automatically. I don't think many would risk it.

Another "knob" is reducing the thinking time...