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Well personally I see nothing wrong with taking someone else's terms of use, going over it and curtailing it to yourself. And legally you cannot in essence copyright a contract. So using someone else's isn't illegal, but then you get into the whole copyrighting thing when it comes to websites. The entire website is deemed copyrighted. But I would be 99% sure that if it was taken to court the court would side with you. Because being unable to copyright a contract takes precedence over website copyright laws. (I.E. Just because a piece of uncopyrightable content is held within copyrighted content, doesn't by proxy make it copyrighted) Phew.... hope that made sense.
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