> You can achieve number 1 (managing user expectations) most simply by just stating any restrictions that exist.

Totally agree, strawman aside, if you keep reading, "it's that we want to enable developers to do cool stuff with the data, and all that that entails. The end goal is data consumption."

Would changing the title of the document from "terms of service" to "usage guidelines" or "using our API" assuage your concerns?