"a large number of Plex users use the software in violation of its Terms of Service (section "Content and Acceptable Use", bullet items 1 and/or 6), therefore all users will henceforth be banned from using Plex."

Nah, actually we as the plex community need to pull our heads out of our asses and remember that the internet was doing just fine before cloud service providers came along.

If you're not self-hosting, it's not your server.

I suspect Plex have a bunch of scary letters from expensive lawyers sat in their office, and this is what they need to do to make them go away.