This API on its own is completely within valves TOS, but there is no guarantee that developers will not abuse it to create plugins which cause violation and I have no control over that. The reason I have released it is because there is so many legitimate things which can be done with this, Honestly I have nothing against violating valves TOS because I feel its very childish and is not good for community servers, but just don't post plugins that do that here because they will be removed / trashed.
I hope this clears things up.
Yeah that's perfectly fine; people who use this should just be aware that if they misuse it they can be banned at their own fault.