The issue with NightOwl was not that the TOS was updated.
The issue with NightOwl is that allowing automatic updating of an app is equivalent to allowing the app developer remote code execution of any arbitrary program on your machine.
Notification won't solve that problem. Disabling automatic updates does.
That's a good point, and in general actual application behavior matters more than what the TOS says. I do think there are unsolved problems with TOS/privacy policies in general though, so I'm interested in exploring ways for users to gain more control over how companies use their data.
The issue with NightOwl is that allowing automatic updating of an app is equivalent to allowing the app developer remote code execution of any arbitrary program on your machine.
Notification won't solve that problem. Disabling automatic updates does.