I'm a privacy-nut type of person and I hate restrictive and absurd licenses. I'm a fan of telling the man to eat it. Note that I'm not justifying restrictive or broad legal agreements, either. I think it's stupid. I just don't think it's any more stupid than similar agreements for similar sites that provide similar services that most of you (including the author of that article) already use every day.
However, I don't see anything in the agreement that you wouldn't normally see on any other social networking site. Unlike some other online bookmarking services, Delicious is a social-networking/bookmarking service, which would explain the concern over content and age and so on. It would perturb me if I was having to agree with something like that for a service which was only me saving bookmarks with comments and tags for my own use that only I would see or access via my own account for myself, but that isn't what Delicious has turned into. Very possibly, they may have even bigger "social networking" ambitions for the service after the purchase, which may further necessitate such stringent clauses.
Besides, if one cared much about that sort of thing, chances are that they wouldn't stop using Delicious now, because they would have already stopped using Delicious when Yahoo! bought them, for similar concerns over privacy and agreements.