If you break any concept/law down far enough, it becomes kinda meaningless.
Terms of use, or laws don't have to be written in perfect logical consistency. The important thing is intent.
The intent is not to block things that resemble running an application remotely. The intent here is controlling everything that could possibly be sold/distributed as something resembling an application or game.
I see these kinds of comments a lot, where someone describes a rule or law, break it down to it's core components and declare it's illogical.
Generally laws are not enforced exactly by how they are written, but by their original intent. This is also why legal precedent and testing laws in court is so important.