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By a strict reading of the ToS, the Curse Client is in violation. However, by a strict reading, *all* addons are in violation, unless the addon author has obtained written permission from Blizzard to create and distribute the addon.
Blizzard permits -- and even encourages -- doing many things that are a violation of the ToS by a strict reading. They've made the ToS in a CYA fashion, so it covers things they *might* want to ban, even if they don't want to ban them *now*. (This is, of course, only logical on their part.)
This means that, if you really want to know if something will get you banned or not, you need to ask Blizzard. Random commenters here can't tell you for sure -- especially since Blizzard reserves the right to change the ToS at will.
And I wouldn't take a random GM's word as gospel on it. Post to Blizzard's official forums, or send them email and ask for an official answer, if you really want to know... but remember that even if you get an official answer today, they reserve the right to change their minds.
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