I don't think the average person will take the time to scrub DNS info like that to make sure a provider is not hosting illegal material (i guess that would be impossible).
Seems the bottom line for making a hosting decision is price closely followed by good support and friendly service. I don't think anyone mentioned "Up Time" or whether the hosting company was in compliance with the million other laws and best practices that govern the industry.
I wonder if, as people become more savvy, they will begin to examine other aspects of the hosting provider.
For example a christian bible school website may choose not to go with a hosting company the hosts a KKK site on it's servers. That stands to reason - doesn't it?

At this point, in a clustered environment that christian website may very well be hosted on the exact same server as that KKK site. Do people even even think about that stuff when shopping for a host? or is getting the cheapest hosting price the bottom line?

Perhaps we'll see a lot more niche specific hosting in the near future especially as hosting providers may begin to find themselves on the hook (<= this kinda parallels Happysucks thread from earlier: New obligations on Internet Service Providers). Seems like this is already happening Adult Hosting, Christian Hosting, Hosting for Car Dealers and on and on ....

I'd Love some other view points on this ....

Might be a strange place for this but ... As a side note ... I just wanted to thank you guys for this amazing learning environment. I've learned a ton over the past month since i joined GWW.- more than any text book or couse at the community college could ever teach. A sincere thanks cj