ToS's are a cover your rear type thing. Unfortunately for companies, their ToS is null and void if it violates consumer protection laws. However, I'm unfamiliar with Europe's laws so I cannot comment on whether or not this ToS violates it.
No, our government is more interested in protecting the business than the individual consumer. Whether or not that is morally right or wrong is a whole other discussion =)
It's Pay to Win for sure. Yeah yeah, I know that its free to play, it doesn't change the fact that I don't like this particular free to play model. There are known and tested ways to design a cash shop so its not pay to win and still turn a profit for the company. Respecs shouldn't cost real money.