Basically yes - It's there if someone is acting in a way that we think is harmful generally and is not covered by a specific rule. While the rules do cover many eventualities there will always be someone who finds a way around them. Another example I can think of is the whole "crash trading" or whatever it was - a sneaky trick to get more credits, i believe this was stopped under this rule.
At least that's how i view this rule - as for the other Admins, it's up to them to chime in.
What it is not is some kind of allowance to let us do what we like - though those out there who are in the "admins-killed-kennedy" camp will believe that's exactly what it's for. Contrary to their beliefs, Admins do in fact try to act for the good of the server rather than themselves or their friends.
