PingZapper and programs like it

UI and Macro
Are they legal to use? I was recently involved in a mass perma-ban wave because of this program, and I was told that I was banned because multiple hackers/gold sellers also use programs like these.

Is it okay for me to continue using programs like this? I live in a college complex and my latency at night is terrible, I can't raid without these programs.
If you got perma-banned for using it, then you likely have your answer on it's legality.
I was perma-banned "incorrectly", according to a game master, and the only reason that I was perma-banned was because that known gold sellers and hackers tunnel through the same servers, so it just auto-flags.
In the terms of use, you agree that you will not:

E. host, provide or develop matchmaking services for the Game or the Service, or intercept, emulate or redirect the communication protocols used by Blizzard in any way, for any purpose, including without limitation unauthorized play over the internet, network play, or as part of content aggregation networks;

Pushing your connection through any sort of tunnel is redirecting a communication protocol used by Blizzard. Apparently they're looking for that, and you got banned because of it.

As for whether it's "legal"... the terms of use say that Blizzard can ban or suspend you "for any reason or for no reason". You can try talking to customer service or a GM to appeal if you get banned, but whether you'll be allowed back on it basically up to the goodness of Blizzard's collective heart.

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