Of course that's permitted.
What they stated was only regarding claiming new ownership over crate names:
> Using an automated tool to claim ownership of a large number of package names is not permitted.
Re:Was Rust Worth It?
by serial_dev on Thursday October 26, 2023 @03:12AM
(#38022647)
Write some automated analysis that looks up popular packages on npm, pub.dev, rubygems, nuget. "Rustify" the package names. Add to it frequently used words, maybe popular names, etc. Then, write a script that creates an empty package, registers a name on crates.io every thirty seconds, and then you have about 20k package names after a week that nobody can use.
What's that? I have scripts that automate publishing of new release of my crates. And I think many projects have.