For reference, Virgin Mobile is a prepaid arm of Sprint just in case anyone didn't know.
Don't be so sore about it... "Pirates" (as you are calling me) that use 3 GB of data a month do far less damage to the infrastructure and data speeds than a "Under the Contract" user that streams 5 GB of data listening to Pandora on the way to work. Yes, it is against contract, but besides being against contract, there is nothing wrong with behind the back tethering.
The reason that it is against TOS is because by making it against TOS, it forces people to buy a tethering plan, which is just stealing from the consumer by charging them for the something they already paid for. It's like someone buying groceries and then the store charging you again for them because you are wearing on the pavement as you carry them out to your car... it's a non sequitur.
You are arguing by the rules, but the rules make no sense. It makes no sense to say that I am a drain on the network tethering 3 GB of data (as we have proved it's the exact same bytes) and people using that amount solely on their phone's are not. I do not drain the network because (for prepaid) I am already at the bottom of the totem pole so I get terrible speeds.
The only thing I am doing by rooting and tethering is avoiding a ridiculous charge. If there was actually a legitimate reason to make people pay for tethering (like network stress) they would try their best to kick out those with tethering (which would be easy to do, simply by swiping a list of installed applications and seeing if third party tether apps are there). HOWEVER, they do no such thing, rather they may simply give you a hard time if you use TONS of data... but even then, there are a lot of people that use tons of data that don't get bothered.
The fact of the matter is... Tethering will pull down the same exact data. As was mentioned, the amount you can pull down is limited to your phone's processing power... Now what I would consider illegal is building a powerful wireless router/server, giving it the same ESN as your phone and tricking the network into thinking it's your phone, and pulling down huge amounts of data with your powerful system (disguised as your phone). But who has time for that
I don't know what else to say... I guess, let's keep this civil