This is the other point of confusion. Said unlicensed Z1 had been on my network, unlicensed, for at least a year. Some other licenses were set to expire today, but I renewed those. So, this one Z1, that had been on my network, unlicensed, for at least a year, was cause to disable my ENTIRE org? Again, what if this was a hospital with thousands of devices. You shut down the ENTIRE hospital over one measly Z1 license?!? I can't be the only one that sees a problem here. There is absolutely no valid technical reason Cisco couldn't simply disable the one unlicensed device instead of the ENTIRE org.
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