MachineZone shouldn't have put all of their eggs in a single basket. Multiple hosting providers, and write your server side so that failover can happen to other datacenters/locations almost instantly.
Exactly this. The idea that MachineZone was willing to take a business that they advertised during the Super Bowl (https://www.youtube.com/watch?v=XkaWyrm8EQg) and put it all in the hands of a single ISP at a single facility is questionable at best.