The more dangerous part is "that we deem".
So far, I haven't had negative experiences here with SH, but that "we deem" really means "SH reserves every right to punch your story into oblivion for any reason or no reason at all." (Humans have this lovely ability to deem anything as anything else for whatever the fuck reason)
Another fun one is "may constitute or contribute": If I write a story about a transgirl, and the story is, well, a cute slice of life without ANYTHING we'd consider even remotely controversial, and some transphobe reads it and gets so angry that the transgirl exists that they go murder a few people in cold blood, my transgirlbook could EASILY be said to have contributed, by setting the bastard off (If they didn't read it, they may not have killed people).
To quote myself when I evaluated the CG and ToS line by line: "As all of the above are influenced by other people's actions, this is out of my control. I am not a Goddess. I have, however, taken caution to advise readers of upcoming subject matter by means of Content Warnings, I have not written in any dangerous instructions to do anything, nor instructions to do anything dangerous, and I have displayed additional diligence in this announcement..."
In short, we are essentially trusting SH to be reasonable. And it seems a thriving community of multiple years is doing something correctly :) (but yes they can also say "content" is, well, the CONTENT that we post. But again, if Tony et al actually DID that, this site would become a meme overnight.)
Have fun :P