It's not ridiculous. If it was for me, i would ban anyone who use LLMs at all, so banning projects that « mostly consist of code written by "generative AI"-tools » sounds very light to me, a reasonable middle-ground to rally everyone around.
Are you sure you don't feel insulted and threatened because you're yourself a sloperator, so it feels personal to have others criticize your practices from a moral standpoint? (i don't know, i haven't researched your profile)
Their ban on nebulously defined vibecoded projects is even more ridiculous.