Re: Play the game
I think it's fine to have a few work questions during my breaks, the same way I think it's fine to answer a call from my wife while I'm working. If I really want a complete break, I'd probably hide myself in a corner or leave the building.
Ideally, your work should be judged by its output, and not by the amount of hours you spend at your desk. But if it's the latter, then doing something else at your desk enters a grey area, because it's not clear if you're working or not... Unless you are also marking down your hours in a timesheet (bleargh).
Regarding this particular case, I think the employer is allowed to say that while at work, at your desk, you shouldn't work for other companies. But using keylogging to catch trespassers goes too far, and that seems indeed what the court said was the problem.