There are other, more troubling things here too. Materials related to the sale of firearms and ammunition are prohibited. Firearms in various forms are completely legal to own and trade to various degrees in the United States, why are documents relating to that trade of firearms banned?
I also see that anything that incites, advocates or expresses profanity is prohibited. I would advocate that all SkyDrive users place a copy of the terms of service in their account. This should incite most people to express their opinion of Microsoft's actions by saying "Fuck you, Microsoft", and thus violating the terms of service.