The short answer: Yes, you're correct (though this would make us look like jerks and hardly qualify as a good
PR move then, eh?

) The more detailed explanation, courtesy of our legal friend and counsel: We receive numerous submissions and continue to develop our own ideas internally. Because certain evolutionary concepts in a game are relatively obvious, if we did not have language like this in our agreement, we would subject DOW to spurious claims. We respect that this could make some people decide not to submit their ideas, but I can assure you that DOW conducts itself with the utmost integrity and prides itself on the relationship it maintains with the game development community.
Hope this helps answer your question.
Eric @ DoW