It is as insane as it sounds. Yes, alternative dispute resolution is perfectly commonplace and indeed in many countries - such as mine - there is an expectation that you attempt ADR before bringing a matter to court, unless there is some reason why you couldn't.

That's fine. That's not an issue.

Disney claimed that due to the terms and conditions of the Disney+ video streaming service, anyone who has or had a subscription agrees to resolve any and all disputes with Disney through mediation and they therefore waive any recourse through the courts. For absolutely any form of dispute, even a wrongful death.

That is absolutely insane and evil to even attempt and there is no justifying it.