Seems like it would've been best handled by an advance warning system, i.e., at least a few days or a week's notice that you're violating their TOS and need to take action.
> And my question was, if the files are private, why should their content be against the TOS?
They probably don't want to allow the services to be used to aid illegal activity. Say what you want about how technology should be completely agnostic to matters of culture and legality, but that isn't at all the case.