Absolutely unacceptable that their TOS basically gives them unrestricted access to your datasets, as far as I read it. The terms let them use your datasets for pretty much whatever they decide they want to do with it (though they do say they would anonymize the data, which isn't especially helpful). The TOS leaves a lot of wiggle room for them to do pretty much whatever they want to the data.
I wouldn't touch this until they get serious about having real assurances that they're not going to access customer data without a real, justifiable reason. If Amazon gave themselves free reign to read S3 data it would be outrageous, this is basically the same thing.
Your datasets are some of your most valuable assets. How is it entitled to not want your vendor having a free for all with them? It would be entitled if they weren't going to be charging for it.
I wouldn't touch this until they get serious about having real assurances that they're not going to access customer data without a real, justifiable reason. If Amazon gave themselves free reign to read S3 data it would be outrageous, this is basically the same thing.