Iv'e been with them and they have not done any of that kind of stuff to me. IDK if its because my domains are not that premium or that they make enough $ not to enforce that.
I have a few hosting accounts and some domains with GoDaddy and have never had any problems with them. As far as their customer service, every single time I call I get a "live" person on the phone within 5 minutes which is awesome. The TOS is there to protect them from scamming unscrupulous people, which there are TONS of on the internet these days. I would be more wary of a site that didn't have a strict TOS.