My theory was that they shouldn't be allowed to have such TOS and be given immunity from lawsuits about the way their services are used.
So basicly the only reasons a hosting provider should have grounds to terminate/interfere with service are - court order/stopped payment/the way service is used actively disrupts other customers.
We should have service "first sale doctrine" equivalent - once you have sold the access service etc you have no say in how it is used.
I don't disagree but don't really get the relevance of your "Enjoy the cloud…" comment. Web hosting is something that needs some provider with terms of service and whether "cloud" or not doesn't seem to make much difference to me.
I would say that the cloud is not only a mix of technologies and solutions, but also a worldview with abusive attitude toward the catt ... consumers. In the 90s web hosting was simple - if it is not CP and you pay your bills anything goes. Right now everyone on the chain thinks and demands rights to interfere with your experience. Everyone is trying to become a gatekeeper and editorialize.
I'm not sure it is a cloud issue I think it is creeping regulation (and PR concern) about controversial content being hosted. The copyright lobby has moved the bar and courts are increasingly taking actions over content posted online (although in many cases directly against the poster rather than the host).
There is obviously an increased risk if many layers claim the right to interfere. E.g. SAAS operated on Heroku running on Amazon gives at least three parties ability to interfere (or just have downtime/issues).
In this case however there was only one party Digital Ocean who operate the data centre and provided the service so I'm not sure it matters that they are a 'cloud' service rather than offering traditional hosting or a colocation service. That said I think that DO got this decision badly wrong.
So basicly the only reasons a hosting provider should have grounds to terminate/interfere with service are - court order/stopped payment/the way service is used actively disrupts other customers.
We should have service "first sale doctrine" equivalent - once you have sold the access service etc you have no say in how it is used.