No, it's bad overall because it means we could accidentally (or purposely) break apart of the ToS, and get done for copyright infringement. Even if that part of the Terms doesn't have anything to do with the copyright.

I don't know how Glider broke copyright laws, but they did break the ToS. Breaking the Terms of Service of a something is illegal as a ToS is a legal binding contract between the company who issued it and the client who signed it (in this case, every single WoW user).

In saying this, whose to say they actually subscribed to World of Warcraft? Technically speaking, if I never signed up for WoW I could do whatever I like, even if it breaks their ToS, because I never signed to their terms. If it breaks other laws (like copyright laws) then yes, I could be done. And that's why it's bad.

Anyone who makes a program for a game that breaks the ToS will be done for copyright infringement. Even if it either does not break copyright laws, or the developer didn't sign any Terms of Service Agreement.