hostgator isn't an offshore hosting.
so the consequence is too big if your sites goes popular.
EVERY legit hosting service has a similar TOS. The reality is that is not likely the host will know anything about your scripts and most likely don't really care unless, as others mentioned, the software creator makes a complaint.
IF the script is properly "nulled" in the first place, then you tell me how likely the creator will find out about it.
You just have to weigh what you think are the real risks. If you're here on BHW, you're most likely taking risks all the time anyway by using many of the methods provided here.
IF one is that paranoid then maybe one isn't cut out to do this stuff online.
If it's gonna make you sleepless at night, then you really only have two choices:
1 - Buy the software
2 - DON'T use the "nulled" software
Anyway ... IF you keep your sites backed up then even if the host, for whatever reason, shuts the site down, you just move to another host.
My 3 centavos anyway!
RM