Classic case of wanting their cake and eating it too. Although I don't think they'll be surprised if their TOS doesn't hold up in court either.

IANAL, but I believe that wouldn't just be simple copyright infringement, but a breach of contract.

The workaround is to use an intermediary so that you don’t have any contractual obligations to breach, and the intermediary stays far away from your downstream use, so they never breached the agreement either.