FWIW, all I ever read about on HN is how DO is constantly a disaster. Why you would choose to host there is beyond me. Just move your blog- It takes all of a few hours.
Doesn't the fact that they agreed to handle it differently in the future indicate that they even believe they handled it inappropriately?
Not saying it's great, but when you're dealing with hundreds of thousands of VPS/cPanel accounts and one account affecting 5000 other accounts on a server you're sometimes forced into a corner where you have to act as quickly as possible.
As a DO user for over a year, I can say I am mostly very happy with the service I have received, although I hope they issue a statement about this, apologising to the author and pledging to review their policies on this.