The problem isn’t any set of rules it is that players can report eachother for whatever they want regardless of rules. Rules have no meaning in the context of the automated system. Terms of service? Irrelevant. The terms say they can ban you for anything they want or nothing at all. So they are within their terms to have an automated system that is based on player reports ban you from the game on their whims.
The majority only want to rush the final boss and nothing else and Blizzard gave them the power to ban you for not agreeing with them.