Yeah, that second paragraph is more what I was thinking (terrible phrasing on my part). The issue is that fighting these contracts in court is risky - you might lose, and even if you don't, it's a big commitment to fight a legal case against a large company no matter which jurisdiction you're in.

To put it another way, look at it from a game theory perspective - there's plenty of benefit from putting these terms in, and no downside whatsoever. So the optimal move for vendors is to put garbage like this into the contact.