Even if the step was against the TOS, Google should have communicated it clearly and set the record straight. The author doesn’t begrudge that Google disabled his account, rather that Google didn’t inform him the reason for disabling.
Then, two days later, the TOS violation he did is okay, but through another program.
The crux of this, is that the clicks he sent to advertisers (and the eyeballs) were real. If I'm selling a product, I don't care if my customers find me from search results or a squatted domain. All I care about is closing the sale and increasing my business.
But that's just my $0.2