I think this probably isn't as big of a deal as people are making it out to be. But I find a certain kind of joy in Mozilla being judged on the worst possible interpretation of their terms of service, since they do that to others _all the time_ [1].
I tend to agree with you, but I’d hope that given how badly this has been received, Mozilla finds some better writers to put some better thought into the contents of their ToS and issue some corrections in the near future.
[1] https://foundation.mozilla.org/en/privacynotincluded/