So it was a copy/paste error.
I still think even in the case their web-hosting service, those TOS are onerous and should be clarified. Terms such as 'sub-license', 'create derivative works', etc should not be in there without at the very least explicitly stating the conditions under which those rights apply. But lawyers tend to prefer overly-broad boilerplate terms that err on the side of taking too much for their clients rather than the other way around. It's good that they've fixed this for their printing services, but I still wouldn't use their hosting service with such broad, vaguely specific rights in the TOS.