Yeah, it's the most restrictive and least artistically inspiring TOS I've ever seen. A VP with considerations this strict probably isn't the best choice for the development of a SynthV voicebank. It's the "psychology" part that is most disappointing-- if you want to "say" anything in your art that grazes negative emotions, depending on interpretation, that's an easy rule to violate. It's not an instrument I can ever see myself using for that reason alone. I was never the demographic though, so I understand why people who were excited about it are upset.
If the phrasing here were a little lighter, I don't think we'd be dealing with anything groundbreaking, but it is what it is.
In the end, this is just another part of the network of conversations revolving around consent in this space. Every single person involved in a project that gives a part of themselves to the public domain like this, especially in the AI space, will have a different emotional relationship with it. So if this is what the people behind the project are comfortable with, there's really no further conversation to be had. If it's a purely business-motivated "character control" decision, my feelings would be different, but we don't really know and the preexisting nature of YuYao as a synth character makes me feel like that's probably not the case.