This is clear cut. The mod is breaking the rules.
But what’s the grey area?
Lots of people technically break rules all the time… if you stream for profit… if you swear in a stream… that’s all technically against ToS. (Streams are supposed to be “T” rated)
Blizz can choose whether or not to enforce ToS. You can ask them to enforce the ToS against this addon, but they aren’t obligated. Talk about the reasons you don’t want the addon so maybe Blizz can understand why this a time to choose to enforce the ToS.