Do they block you from using your own wired connection too, or just Wi-Fi?
Asking you not to set up your own Wi-Fi actually doesn't seem wholly and completely unreasonable to me? It could plausibly lead to congestion and worse performance for everyone.
It reminds me of my college dorm. Every dorm had an ethernet jack, and there was a communal WiFi network, but we were asked to not create our own WiFi hotspots.