I agree. Reading the TOS is critical. I'll repeat, just in case it hasn't been clear: I have no qualms with GoDaddy.com enforcing its terms of service. But the terms of service indicate they'll do all they can to contact the domain holder before taking extreme action like redirecting the DNS. In my case, they didn't do all they could. They took one complaint, tried reaching me via e-mail, and within hours of receiving the complaint and not reaching me - redirected the DNS.
Had they sent email to the valid address in my account and I ignored it, or had they tried to call me at home and failed to reach me, then I couldn't fault them for enforcing the TOS. They'd also be within their rights to tell me to take a long walk off a short pier for complaining.
But, in this case, they dropped the ball, they screwed up, and they're trying to make good on it, to their credit.
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