What really gets to me is the aggressiveness of the bans. People will accidentally break your ToS, it simply just happens, and they rarely mean anything by it. I would happen to know some of the people that got suspended this time, and I can show you discord chat after Azuregos where they're surprised that the ToS stated such rules.
Same discord chat shows that efforts were made in guild to make sure that noone would ever do such a thing again, as that is not what the guild is about and it was completely by accident. The breaches of ToS stopped immediately after the individuals were made aware of the rules, and the talks took place way before you even lifted your hammer.
This is also stuff that you would know, if you didn't blindly smash the hammer without contacting the offender, and hearing their side. You're not dealing out justice, you're just performing knee-jerk reactions to something as simple as an accidental breach of the ToS. If anything, the people you suspended are upstanding members of the community, as opposed to hundreds of other players that constantly challenge the ToS with their behaviour.
Our guild prides itself with being a toxic-free environment that follows the rules and cooperates with any guild that wishes it. For us, the community comes first and we would never allow people that would intentionally breach the ToS or not represent the guild in an acceptable social manner.
Would it honestly hurt to just have a chat with them for two minutes and ask them: "Why?"
If I put on my tin-foil hat, I would find it even more convenient that the suspension is lifted post-Sunday raid time, and post-Azuregos respawn. This has the reek of a targeted ban all over it.
The poor judgement displayed and the lack of information from your ToS on the specifics of griefing (look at Enwyn's post above this for how you could improve upon that), will keep any proper attempts at world boss challenge from happening, since noone is willing to risk the wrath of GMs, because they accidentally stepped over a rule during a heated moment with hundreds of people trying to get a boss kill.
Banning like you did today only results in paranoia, where people refuse to play the accounts they're raiding on outside raids, because what if, by happenstance, one of their actions falls under your extremely vague definitions of griefing or breach of ToS:
"Elysium Staff reserve the right to take action on accounts for ANY reason, even if not covered in these rules. These rules may also be updated without notice at any time."
There is absolutely no way for us to always make sure that we're following your ToS with this taken into account, other than not play the game at all. One of your GM's could suddenly decide that cosplaying in Ironforge is a bannable offence, and ban fifty people without any reason given.
You guys are doing amazing works on so many fronts in this project, but sometimes you show complete lack of judgement, and really need to adapt a more casual approach to situations like these.
As a last note, I would like to add how petty it is to report people for minor breaches like these. Your first course of action should be to inform the counterpart of their breach, and if they don't stop, you report. The players in question stopped immediately after, with one unable to do so, as he was frozen in place and Azuregos felt like having a frozen meal for whatever reason. One thing is to have a rivalry going where you toss some banter after each other on discord, aiming to get people banned for bloody pixels is another thing entirely, and completely unbefitting mature behavior.