There are countless other games that record in game chat. Is there a way to talk to microsoft, or maybe to see these terms?

Not being able to hear the voip in recorded clips and through stream is severely harming people ability to make creative content with this game. As stated previously done servers are affected by the fact that they cannot enforce rules. If someone were to use innappropriate Language or say harmful things to another player this would be hard to prove to a server owner or to anyone for proof for that matter. It would be the complainants word vs the Accused. In which case it would be hard to make that judgement call as to who is in the wrong if there is no evidence.