Following up...the
integrated program FAQ says
What does it mean to have “No Blackout Dates”?
Hotels have standard rooms available for redemptions every day. Blackout dates traditionally refer to a limited number of dates on which a hotel could choose not to accept redemptions. With our “No Blackout Dates” policy, hotels will no longer have blackout dates for redemptions. Hotels may limit the number of standard rooms available for redemption on a limited number of days.
(limited being no more than 360 or so....)
This is their old policy, and the one I expected from the integrated program. The T&C you cited above obviously conflicts with this.