tldr version:

Suvega: If you want to know what warden is looking at do so and so.

Thinus: But noone does so and so.

Zaelar: Then start doing so and so.

long version

As someone else already pointed out they are certainly going about it in the most complicated and self defeating way possible.
The only complicated part is making it harder to detect and get around. I don't see how it is self defeating.

Who even reads the EULA? Just because they put something in the EULA does not make it legally binding.
Considering you have to agree to the EULA to play... If you move into an apartment and sign something that you don't know, and it turns out that it says your landlord can take pictures of you in the shower, you won't be winning any legal battles there.

And who monitors their system all the time?
People who want to know what warden is doing.

I would be very surprised if your WoW password was ever sent in plain text. I'd like to see proof of that.
Monitor your internet traffic? I don't know either way, but that should give you the proof you want. Outside of that you won't get anything other than someone saying it does.

Again, who monitors their systems all the time?
Again, people who want to know what warden is doing.

I read it differently. There are 318 different versions detected so far. With the current functionality they can "inject" a new version anytime they want to.
IIRC they could always do that.

The argument is that it does not just present problems to bot writers but to anyone who actually wants to verify that each of these versions are "safe".
I'd say monitor your system all the time, but who does that?

Would you like to go to the cinema if they made you walk through metal detectors and pawed through anything you carried with you to check for hidden cameras etc?
I take it you're getting at if movie theaters did something that you don't like as a security measure you wouldn't go to movie theaters. So if wow is doing something that you don't like as a security measure, don't play wow.

Personally I really hate the fact that a process running on my machine can look at other processes without my permission.
It has your permission. Remember that EULA you didn't read but agreed to? Want to start guessing what you agreed to?