Just to clear things up... we don't allow the linking to anything illegal from your website. It does not matter if it's hosted on our servers or not. It does not matter what type of made up terms of service you put on your own site about it, it's still not allowed.
We're also reasonable, if some random person posts something illegal on a forum you control we're not going to permanently suspend you. If you have a whole section dedicated to illegal activity, it's going to be a permanent suspension. It's clear in this case you linked to something illegal on your website on purpose.
The account should not have been unsuspended, without looking into it in detail I can't see why it was temporarily unsuspended. I would guess someone that has higher level access saw the thread and wanted to verify your claims, as we truly do not want to suspend someone that doesn't deserve it. It was suspended again shortly after it was removed.
We allow one appeal because we don't have time to argue, generally if you're suspended it's for a good reason. In the off chance there is a mistake you have a chance for it to be reviewed one time. If it's reviewed and still found to be a proper suspension there is not really a point in spending valuable time arguing about why or why not it's suspended as the decision has been made and is final.
Regarding the claim of a runescape 'emulator' being legal because it's open source, this is not true. I'd suggest you read this wiki article:
http://en.wikipedia.org/wiki/Bnetd
What this whole thread comes down to is not only did you breach our terms of service, you're participating in activity which is against US law. You're upset because we're being a law abiding company and justly removed your content from public access. I see nothing wrong with this and completely agree with the staff who have suspended the account and made the final decision to keep it that way.