Your claim that putting AdSense on a domain without first publishing some content is against the Google TOS is unsubstantiated. In fact, Google actually advocates publisher to monetize their unused domains with the Adsense for Domains program.
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.
And I just want to chime in here and state that I'd be miffed if I had a domain up, generating clicks for Google (in the story the author claims there was no click fraud, and i choose to believe him) and they shut down your account, without reason, and refund money.
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.