It certainly does seem to imply such. Maybe there's unwritten policies -- you know, if you only do this as a matter of habit or to deliberately undermine the advertising portion of the Sponsored+ membership level will they take action -- but the letter of the TOS is pretty harsh.

Of course, one of the Slashdot comments had a good point that EULAs and TOSs can be edited arbitrarily by one party, without negotiation, and as such, that hardly constitutes a valid contract. And while I can see LJ/SA's rationale for this rule, instituting it in this manner (very very quietly with no clarification) is hardly in good faith.