The only rule that example really contravenes is 7.c.iii of the TOU (which is pretty wide open and non specific).
Which the interpretation might be, "your character is doing boring repetitive stuff, so you should be getting the experience of doing boring repetitive stuff too", but this is not actually the case is it. Your character is putting stuff in a forge, melting stuff, cleaning it, pouring it, moulding it, cooling it. You on the other hand are keeping a seat warm. Perhaps if you did some cleaning around the house (or making cakes) while AFK, at the same time, it would be a on a par experience, and the WAF would be high.(iii) Anything that Blizzard considers contrary to the "essence" of the Game.
If the essence of the game play is to capture your attention, then perhaps the design of areas which do not require your attention needs to be looked at.
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