Surprised it took them this long
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I had been voluntold to be on the ads team, because I had sent a list of things that needed to be done to make ads doable and not terrible. Of course, none of my ideas were deemed feasible at the time, including figuring our the ToS stuff, because no use building a product you can't launch and ToS changes aren't easy.
Don't sell yourself short ... they did all the things to make ads doable it was just not feasible to make them not terrible.
In my mind, early focus on ToS could have possibly gotten the change more palletable/directed the project towards more palletable choices or perhaps more likely gotten to the cancellation decision faster and people could work on different things.