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I look at it this way ...
As stated above most of these sound mods are done by dropping a new sound file (named exactly as the sound you want to replace in the MPQ files) into the data folder (with the correct folder structure).
If this was any reason to get banned or was against any rules in the EULA then this "hole" would have not been programmed into WoW in the first place or would have been "patched".
When the game goes to play a sound the ones in the data folder override those of the MPQ. This is by Blizzards own design. It has been there since BETA. If it was an issue with Blizz I think they would have changed some of the games code to no longer load sound files from this location.
Just my 2¢
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