Glad that worked out. Actually, it's a very minor fix to 2.6.3, so we won't roll up.
I believe that you can change your selection just by selecting "works" when you are on the plugin page. I don't think you can change it to unselected, though. I certainly would appreciate if you could change it (it generally leads to a barrage of support emails asking about upgrades).
I like the suggestions - I actually do have on the project list changing the TOS to be set as a page. I'm not sure about the other issue. It's a good idea and I'll look into it.