Do you realise that these Terms of Service do NOT apply to software submitted by a developer for inclusion on their store?

There is an entirely different developer agreement that supersedes the user agreement for the Oculus Store. A fact which is even stated in the user agreement you have quoted from, but obviously not read in full.

This agreement is purely for user submitted content; such as profile pictures, game reviews, shared screenshots, and so on. The policy regarding such items falls in line with almost every other online store in the world (including Steam).