I'm thinking Rackspace might well have been in the right on this one. If the customer was in fact phishing, Rackspace was well within their rights to shut down the account. It's really up to the application creator to prevent that abuse.
That said, it's good to have a reminder of the risks of outsourcing your hosting. I still think the tradeoff is worth it for experimental products where you don't want to invest too much upfront.
That said, it's good to have a reminder of the risks of outsourcing your hosting. I still think the tradeoff is worth it for experimental products where you don't want to invest too much upfront.