If I create a hardware device that utilizes AVS can I then sell that, having a hard time understanding the TOS?
AVS is available for commercial use. The device of course must be in line with the TOS, but commercial use is allowed. There are also other resources which specify how to build a successful and compliant device. The Design Guide gives high level design guidance on what we expect to work well, the Functional Design Guide gives specific detail about behaviors your device must and should exhibit, the User Experience Design Guidelines has information about how your user experience should look and behave, and the Marketing and Branding Guidelines has information about how you should present the product. Finally, if you are interested in providing music, you will have to go through a process to request access, and get certified.