Their actions are inappropriate.
The majority of commentors here assume guilty until proven innocent.
In fact, the author of the article has still been unable to identify the "phishing" form. Was there even really a phishing form?
With all this anti-phishing technology built into modern browsers, why is it Rackspace's responsibility to "protect" users from "alleged" phishing sites?
For copyright, we have the DMCA (for better or worse). Perhaps we need some similar sort of due process for hosting providers or cloud providers.
Most appalling is Rackspace's lack of transparency in handling this.
Pandaform was never contacted by the complainant. The complainant only contacted Rackspace. Rackspace assumed, without investigation, the complaint was legitimate and gave the guy notice via email.
Also, the real rub, is the fact the Rackspace would terminate his account if he got a second complaint.
So, it is not necessary to have an actual phishing form on his site to have his Rackspace hosting terminated. Someone simply needs to allege this to Rackspace, and his account and data will be gone forever.
That is fanatical? Again, I cannot recommend Rackspace.