Did some testing and this appears to happen if you use anything, but Tequila to run the game. If I use Tequila it prompts the new agreement and then connects after logging in.
If I use CreamSoda (which I do so I can play on different servers when this one is down), it just fails to login at all even after using Tequila to accept the agreement.
Is there any way this can be fixed or was this intentional... I really dont want to have 2 different launchers depending on which server I plan on using...