> followed by the requirement that subsequent arXiv submissions must first be accepted at a reputable peer-reviewed venue"?

This part seemed reasonable too. I'm not in academia, but my understanding is most people writing papers intend for them to be accepted by reputable peer-reviewed venues, but post to arXiv because those venues don't always allow for simple distribution.

If your papers aren't going to be accepted at reputable venues and you posted slop to arXiv before (and they noticed it!), seems reasonable that they only want reputable stuff from you in the future?