Also the only thing you cannot trade from kits are the sand
But yes podzol was pretty much always illegal to trade and there was no notice of the rules ever changing.

 

Rule 8: Do not trade illegal-to-trade items
Offence Level: Medium
The server has lots of illegal items that can't be traded. The list is pretty big, so it can be over whelming. It is best to message a mod or donor if you are unsure if an item is illegal. This is the list and why. (This list is for .net, it is different per server)

1. Dirt (Starter item, you need to vote for more (you get grass blocks))
2. Sand based items [Sand, Sandstone, Smooth Sandstone, Chiseled Sandstone, Stairs Sandstone, TNT] (Starter item, donate to get a kit to get more) [Glass, Stained Glass, Glass Panes, Stained Glass Panes, and Glass Bottles are allowed on .Net. Only Glass bottles on .Org]
3. Gravel based items [Gravel, Flint, Flint and Steel] (Was a cheap item, and it can be used to kill AFK people at their island.)
4. Silverfish Spawn Eggs (Can be used to grief without creating logs)
5. Steve and Wither Skull Heads (Withers are self explanatory, they are bosses. Steve heads I am not sure, sorry)
6. Buckets [Lava, Water, Milk, Empty] (Starter item, get more by getting iron)
7. Sponge (Creative only, Legal on .Org only!)
8. Bedrock (They are creative only)
8. Mycelium (Expensive, Spreads to dirt)
9. [.org ONLY] Ice (Water does not freeze)
10. [.org ONLY] God Items (High Donor perk)
11. Podzol (Can become dirt, then grass)
Any player who fought that podzol was legal did not read the rules. Lets end this ok... Podzol is illegal, no mod will allow this trade anymore.

 

All moderators now know this

 

Its only a guide best not to think too much into it. I think items like dirt is considered only can get from new islands, but grass turns to dirt when mined.
I think this is done discussing, so I will lock. message me for it to be unlocked if needed