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Why would they allow to make several chars on one account if it was against their tos?
If you play multiple accounts thats another can of worms tho.
As to your question why "they" should allow the creation of alts under the "worst case assumption" I was worried about: Well, "they" do have a vested interest in having players pay constant subscription fees for premium status, do they not?
Have you ever seen the error message depicted here?
https://forum.albiononline.com/index.php/Attachment/24440-hh-png/?thumbnail=1
I found that image on an Albion forum thread titled "Alt account must need premium?" (sic).
Talking about the reverse conclusion: I could not find an explanation why having Premium status on all of your toons would allow you to log in multiple characters at once at all. Who does that, practically speaking? Does a PC premium whale have multiple windows open on his screen (or use several monitors) and control several characters at the same time ("multiboxing" - as you put it - on his island farms)? That part does not seem to make sense - unless you assume that the ToS section actually prohibits mutual support between alts of any kind, unless you pay for the privilege. Can you explain that?