Thanks you for your response. I agree that the two pieces you mention would certainly be a problem.
Your first quoted issue seems to be a pretty solid no on any third party content, I agree.
I interpret the second one slightly differently, based on the very last word. They would be granted the right to use, reproduce etc etc the mod. Not content from the mod.
But regardless of how its interpreted, I don't quite understand how certain popular overhaul mods are even possible with Paradox's policy. I could name three just off the top of my head that would be in violation. I've asked their forum moderator, who has been leading the discussion on their modding policy, for his insights into this problem.
Hopefully he can clear this up. I'll await his response for now.