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DD, what you posted is for checking link popularity and not checking position. Plus Google will only inspect, if there are more than 1000 requests per day per IP. Who's an idiot enough to go checking your own link popularity 1000 times/day? There's no other query where your domain would be present so I still see no way of Google banning domain. Blocking your IP, sure, but domain? No.
If you are checking positions for a certain keyword Google has 0 idea which domain in particular you are interested in or even further which is yours. So it cannot just ban because it has 0 idea what to ban. Unless you are constantly checking your link popularity. Yet who's to say you are the owner of a domain you are frequently checking?? I could be constantly checking dangerdave.com just to make sure you as my competition didn't get too far with LP. Next I see is your PR going grey. This way one could easily kill the top players, wouldn't you say? You think Google would allow this to happen? Banning IP yes, to stop the user, but banning a domain? Not this way.
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