Finally! Someone else sees it!
These terms of use licenses in City Open Data initiatives are troublesome, and since each city just copies the other the troubles are being repeated!
This article addresses the issue a little, see the before last 2 sections of the article:
Vancouver City Hall's Open Data Experiment
http://thetyee.ca/News/2010/04/26/OpenDataExperiment/--
Tracey P. Lauriault
613-234-2805
https://gcrc.carleton.ca/confluence/display/GCRCWEB/Lauriault