Let's concern ourselves with the general case, setting aside the specifics of the WPMU/ServerBeach service arrangement.
A customer could be purchasing a full server, or perhaps just rack space, and the provider might not have (or reasonably want) finer-grained server access or traffic-blocking options.
Faced with a DMCA notice, and in the sort of knee-jerk cover-thyself mode of thinking that the DMCA encourages, such a service provider may have only one crude switch to throw.
Reckless/automated notifiers face few penalties for misdirected or overbroad notifications. For example, they can ignore a particular website's DMCA contact information, and just start firing away at more foundational services whose contact info can be auto-discovered, like the IP-block managers or even domain-name service providers.
Those are a problems arising from the DMCA's liability/incentive setup, not the service provider.
This case is bad enough, in that even a relatively well-considered notice, and a default reaction, can crudely impair a lot of other legitimate publishing.
It's not clear to me, though, whether Pearson tried contacting the Edublogs administrators first, or just skipped to the ISP. (I'm also not sure if http://edublogs.org/abuse/ existed before the incident -- but even if not, DMCA practice should require an attempt to contact the narrowest service-providers first, and only move 'upstream' if that doesn't generate either action or a counternotification.)
The question, which the link-bait-y article didn't bother answering, is whether or not ServerBeach expressly outlined its response to DMCA takedowns beforehand. If not, they have more than a PR problem. If so, then not a very good idea to host a blog site (or any user-generated content site) with them ...
Also, at $75k/yr seems they're well beyond hosting and should be collocating their own hardware.
they could at least have called us!
You do have backups, I hope? You can just be up and running on a new provider within a day or so?
In the past I would always have said "You must have backups, always, no exceptions". But I realised when reading your post that there must be some businesses that don't have backups. Some of those have made a rational sensible decision. And I'm trying to work out where the cut off is between explaining to a customer that their data has gone and buying a bunch of drives for yet another rack.
I've mostly gotten over giving people grief for not having backups when fate finally catches up with them, so that's why I was asking.
I don't understand your last sentence.
Sorry to hear of the dreadful service provided by ServerBeach!
Blaming the law because the service provider isn't following it is absurd.
The whole tone from the government is to encourage the rights of those making claims against those taking advantage of their rights to publish. It is not at all surprising to repeatedly hear of draconian actions taken on the basis of DCMA. Exempting the DCMA from criticism based on what is actually happening is not sensible.
DCMA, and the related pressure from the government on related matters, is of course likely to cause people to make decisions to essentially turn of the printing press (the server) when confronted with DCMA notices.
Granted, in this instance I would blame the host for a large portion of the problem.
I also find Pearson's actions ridicules. The consequences of their silly action were very bad. The host shouldn't have made the bad decision, but they wouldn't have been put in that spot without a silly action by Pearson. To me the host deserves most of the blame but DCMA (and all the hype around government's get tough policy for the copyright industry) and Pearson deserve blame also.
(What a strange world I find myself in to be defending the DMCA so many years after being part of the opposition to it on Slashdot.)
ed: "farms" has posted a link downthread which explains more of what's going on. It's more complicated than the TechDirt article makes it sound; it's also still not primarily a DMCA issue, but a ServerBeach customer service issue.