I agree that the situation is legally impossible: basically they are trying to hold you responsible for code they add and which you cannot touch. Won't keep up in court.

Secondly it does not look good for the site owner, as some have a few subdomains and users might make a typo. 3rdly, Godaddy and others also do this, but at least they 'share' any 'profit'.

Anyway, I just got my first few domains at name.com and just forwarded them to another domain. No spampages. Cheers