As for the disappointment at BlueHost - they should have probably let the customer know before taking action - but other than that I think they did the right thing. As a veteran of the hosting industry, if one of your customers wordpress blog was hacked and hosting a phishing site, would you not disable the site and let the customer know right away that they need to clear things up? That's just a random example, but any sane company will protect their servers via a TOS - if they didn't I would be quite concerned about the service they are offering. Just my $0.02 on this..