I'm still waiting to see the contract. Did a meeting of the minds take place when we weren't looking? Is there even the slightest indication that the OP was aware of these terms when they purchased the miles? This is not as cut and dry as some of the airline apologists would make it out to be.

People sue companies all the time, despite draconian terms of service. Sometimes they win, sometimes they lose, sometimes they are settled. But the idea that anything that's written in the terms of service is iron clad and there's nothing you can do about it is simply not true.