That may be true for shared hosting, but not for VPS.
The entire point of having a VPS is that you're guaranteed a slice of the server to do what you want. If your provider is somehow monitoring your processes, sniffing your traffic, and setting restrictions on your applications, then I would find another one.
I was referring to the passage in the article which reads (emphasis mine): 'Distributes, shares, or facilitates the distribution of unauthorized data, malware, viruses, Trojan horses, spyware, worms, or other malicious or harmful code (collectively, “Harmful Components”).'
I took that to include copyrighted data, including Battlestar Galactica episodes.