Earlier quoted context omitted.
What do you mean by "not particularly limited" in scope? It seems to me the intent of the provision is that more is required to run afoul of the provision, e.g., that a site also be "designed or operated primarily for the purpose" of enabling or facilitating illegal activity. I give you that the provision is ambiguous. If so, then that is the problem. Say "The provision is ambiguous." Don't say that it clearly allows…
If we need a law, let's put a law in place with clearly limited authority, not one where reasonable people can wholly disagree about what it says. I've never understood why lawyers tolerate ambiguity in the law. But maybe I'm wrong: how can abuse be prevented if this is passed? If abuse starts, how can it be stopped without court action? I'm still reeling from the '90s when Microsoft considered court battles just ano…
I don't know about your iPhone TOS. You could do some research and/or retain a lawyer to get a legal opinion on what the law requires, which is presumably what a court would do if confronted with your case. If the issue (or a nearly identical issue) has previously been litigated, then the previous court decision will have some (varying) degree of precedential value for your own case.
In case of you and your iPhone issue, this is nothing new. Many everyday situations arise where there simply is no practical way to dispute another party's interpretation of a contract or license. This sort of "do what you can until somebody stops you" has been going on forever. (Class actions exist as one way to avoid this problem in situations where numerous individuals with limited resources are wronged in same way by a more powerful defendant, but the solution they provide is limited at best.)