That seems to directly contradict their policy though. Here's the relevant bit again as it was stripped out of your post:
Now I'm assuming that downloads refers to P2P downloads - maybe that's an incorrect assumption - but that's the way their throttling worked up until recently when they changed the wording of the policy. For example, the old policy included an example where P2P traffic would be throttled but iPlayer would be unaffected.
As I said earlier, it's a real shame that they made their policy less clear
Anyway, in practice I find that this is less of an issue than it appears to be when you read the policy.
Downloads = downstream bandwidth. Uploads = upstream bandwidth.