I like to bash GoDaddy as much as anyone else, but it's not only their fault if they obeyed a law enforcement agency that issued an ilegal order. I'd like to see government officials being punished for that kind of authoritarian atitude more frequently (we have plenty of that here in Brazil too).

A tax audit is crippling enough for business. Registrars like GoDaddy are exposed to a huge vulnerability in the form they don't know exactly with whom they do business. All you need is a credit card.