They are not that big online. Allowing small affs to sign up under these terms means that they will get lots and lots of free online branding. Small affs will post their links and banners and reviews etc all over the web, and it doesn’t cost them a penny.
But the 3 month quota, coupled with the 3 year termination of payments for players under your tag, can also hit big affiliates badly.
Stuff happens, you can lose google positions, you can get sick or have an accident, and in these scenarios they will take away your honestly earned income to boot, leaving you in a very bad situation.
These terms are just not acceptable, period.