First, and most important, is the fact that almost ALL Sims2 sites are in violation of the EULA.
Wrong. It specifically states in the EULA
You may include materials created with the Tools & Materials on your personal noncommercial website for the noncommercial benefit of the fan community for EA’s products and provided that if you do so, you must also post the following notice on your site on the same web page(s) where those materials are located: "This site is not endorsed by or affiliated with Electronic Arts, or its licensors. Trademarks are the property of their respective owners. Game content and materials copyright Electronic Arts Inc. and its licensors. All Rights Reserved."
Whereby, if you put up that notice, you can provide it.
I mean thae part that says you can not "reverse engineer" or "disassemble" the software. This means that you can not examine the game itself or it's file formats to find out how they are put together. So, programs such as SimPE and anything made using such programs also violates the EULA.
No, that applies to the tools that you use.
Without limiting the preceding sentence, you may not modify, reverse engineer, disassemble, license, transfer, distribute, create works from, or sell the Tool, or use the Tools & Materials to further any commercial or unlawful purpose.
You cannot reverse engineer Bodyshop, or Homecrafter and sell it, or distribute it without trademarks, or distribute it as your own work. It says nowhere in any EULA that you may not reverse engineer the files and make more content that may not be used for any purpose - it is referring to the tools.
But all this talk about the EULA is pure BS as far as I am concerned, because you don't really care about it at all.
I only converted to this way of thinking after reading the EULA - I follow the law, and while others might not care, I don't even cross against the little green man because it's against the law.
Here in the US anyway, a pesron under 18 can not legally agree to a "contract" which is what the EULA is. If I am under 18, I can click the EULA and install the game, but legally the EULA is now void.
No one under 18 can form contracts needed to run a business either, so it is moot.
But this whole EULA nonsense really puts this site in a bad light, and by extension free sites in general, and turns a lot of people away from your campaign.
It's not nonsense, it's a contract that we all agreed to. It's a legal document. And this EULA nonsense hasn't turned away anyone who didn't already think that paysites were a good thing - it's just the latest scare tactic used by paysite sympathisers.