Cars aren't illegal, hacks are.
In extension, it is Badspot who determines if said hacks are illegal or otherwise permitted. What the EULA does is give Badspot the right to decide this with effective legal stand, since Badspot owns the rights to his own game. Since Cca hasn't been banned, either Badspot hasn't been online, or he wants to see how this turns out.
Think of it as the EULA being the judge, but Badspot being the police. The judge cannot arrest the offenders, but the police, as the executive force, can. This is in-part what's so unappealing about YouTube's policy on copyright– it is all determined and executed with one electronic system.
Though, Badspot is not one for double standards, as far as I've seen.
Again, not defending or attacking Cca, just bringing points to the table.