The main differences between the post here and your description that I see are a) the post didn't explicitly clarify that this only applies when domains are determined to be malicious, b) the post is less optimistic about your appeals process, and generalizes the recently documented example where the appeals process failed.

However, regarding the core issue (a false positive on the fraud detection can get my domain both deleted and blocked from transfers) the post and your reply seem to be in agreement. (And the "typically take steps..." makes me wonder whether there are cases where you don't even notify the account holder, aside from court orders.)

I get that dealing with fraud at scale is hard, but this (especially the lack of a "why this won't happen again") does not exactly reassure me.