But the phone's terms did state (according to TFA): “You may only purchase Devices for your personal use. You may not commercially resell any Device, but you may give the Device as a gift.”
That's exactly my point. I'm critiquing their policy.
Sorry, I read it as protecting their policy
This is (one of) the problem with EULAs: even if I noticed that while not really skimming the EULA, I would ignore it as it seems completely unenforceable from a legal standpoint. I buy something from you and you get to determine what I can and can't do with it? Don't let EA and the other AAA game makers hear about this!
Google does have a say on what you can do with their service.
These people were clearly trying to game the system. Google caught them red-handed and has now exercised their rights.