I had the same question as @pitrou regarding the specific paragraph. I can completely understand the need for termination in case of abuse similarly to the intent of the following paragraph:
2. PSF May Remove Content
We have the right to refuse or remove any User-Generated Content that, in our sole discretion, violates any laws or PSF terms or policies.
While this paragraph is about content, I would expect the PSF to also have the rights to terminate services when violations of laws or PSF terms or policies occur. However, the current paragraph is much more permissive regarding terminations. So I was seeking clarification.