I work on the Google Maps API team. I am not a lawyer, but my reading of the terms does not equate with yours.
Here's the excerpt:
(a) Free Access (No Fees). Your Maps API Implementation must
be generally accessible to users without charge and must
not require a fee-based subscription or other fee-based
restricted access. This rule applies to Your Content
and any other content in your Maps API Implementation,
whether Your Content or the other content is in
existence now or is added later.
My reading is that in your example, charging businesses to list is okay, but charging users to access the site is not."10.1.2 Restrictions against Commercial Use.
(a) No Fees. You must not charge users or any other third party any fee for the use of the Maps API Implementation, the Service, or the Content, except as permitted under Section 9.1.2"
For his listings website that charged business owners fees for "premium" listings, Google[0] considered the embedded Maps to be part of what he was selling. They argued that the service as a whole (incl. maps) was "the product".
We disagree, apparently, but our interpretation doesn't mean diddly squat until push comes to shove.
[0] Edit: by "Google", I mean whatever sales drone is trying to get you to pay. I assume their salespeople are on commission like any other company.
With one important difference: they're the most arrogant, uninterested and rude sales people i've ever had to deal with. "Because, what are you going to do, use Bing?"
C'mon OSM. Can't get rid of google fast enough.
If so... would like to get in touch - maybe you can help my friend out by putting that sales drone in line.
Read that again. If you make a classifieds website but charge businesses to list, it's a violation of the free Maps API TOS and you need to purchase an Enterprise license. Enterprise licenses start at 5 figures/annum for low-volume usage.
This is not some abstract ideological nitpick. Google has ramped up its attempts to monetize Maps ever since they introduced quotas a couple years back, and they are actively pursuing businesses to force them to buy an Enterprise license. So there is a very real risk that you could be targeted if you embed Google Maps, especially if your website gets big. This is no doubt one reason why companies like Foursquare, Craigslist, etc. use OpenStreetMap rather than Google Maps.