Couple of people as well as Blizzard itself does say that multi-boxing doesn't violate the terms, but I disagree with this. I'll try to explain why I thing it does violate the terms.
First of, in the terms of license from blizzard itself included with WoW. It says something about, that you need to control your character all by yourself, if not you're challenging a permanent ban.
Now let me explain how multi-boxing works.
You have multiple account and you can only view 1 screen a time controlling 1 character 100% by yourself. A program does the rest of the job to send keybind to the other WoW copies running on the same or another computer. Meaning that a program copies your keys and takes care of controlling your character without any further effort of watching more then 1 screen a time or even touching a 2nd keyboard or mouse.
Did does mean that an external program is copying your movements to >control< a >character<. By all other means, you do not control the other characters that are being multi-boxed yourself, a program takes care of the multi-boxing them.
When doesn't it violate the terms then in my opinion?
- you watch all those screens yourself
- control keyboard and mouse all by yourself for each character without key binds being copied / macro'ed to another wow instances
Why doesn't blizzard ban multi-boxing people?
- they have to buy multiple account to multi-box
- monthly payment for all those account which are used to multi-box
So I think they just agree with the fact it's not violating anything because they earn money from those people anyway.
Now the funny fact comes right now. I know at least 1 person who is banned for controlling his character using a VNC like connection (remote desktop). Where a program copies key binds to send over to his pc at another location and control his character. This way he could play wow without installing it on his workstation at his job. He got banned because of: "external programming interference with wow" or something. Now how different is this from multi-boxing instances of wow on different computers?
And why did I create this topic? Because I tried some pvp in cata last night where I was about facepwned by a person multi-boxing 6 alliance shamans and actually ruining a BG for about 4 times on a row for the Horde side. That ruined my bit of WoW PvP last night, and this wasn't the first time that someone did this.