Folks, you don't need a conspiracy to explain liability.
Paypal are money-grubbing capitalists. Smashwords are money-grubbing capitalists. They want money. They want to take money. Taking money is how they work.
When money-grubbing capitalists (who we all love) say, "I don't want your money," there are two possible reasons for doing so:
1. Company officers will get arrested for this stuff.
2. The Feds can freeze all our assets, or if we are lucky, hit us with astonishing fines.
That's it. That's all you need to guess.
You are free to write what you write, but don't expect someone else to go to the mat for you. Quite the opposite, unless you are worth a fortune, expect to get dropped the moment that you don't look good.