And if I want a infinite repetition of a single work, only my PC-Hardware will prevent me from that and no dumb service agreement.

That is entirely not the point. The issue isn't the infinitely repeated word. The issue is that requesting an infinitely repeated word has been found to semi-reliably cause LLM hallucinations that devolve into revealing training data. In short, it is an unintended exploit and until they have it reliably patched, they are making it against their TOS to try to exploit their systems.