"You acknowledge that if you fail to comply with the foregoing restrictions Nintendo may render the Nintendo Account Services and/or the applicable Nintendo device permanently unusable in whole or in part.”
So no, it's not misinformation, Nintendo is straight up telling you legally that they can and will do this. This is not a hypothetical. They may not have done it yet but there is no uncertain terminology around their ability and willingness to do so. The fact that they can even threaten this in their EULA is a huge warning flag that everyone in this thread is correct to be upset about.