As someone who is also affected by this sudden outage, I have to agree with you. Noip was the last free service that my home router supports. Thanks to Microsoft, I can now log into my computer, curl the external url, note it down, and adjust my remote access scripts every day.
I cannot believe that this is apparently legal. In my book this proves beyond any doubt that the US legal system is totally fucked up and that we need international treaties to protect non-US users and customers from this system. This is also the first time I am seriously considering taking a lawyer and press charges against Microsoft and/or the court responsible for this. It is probably not going to happen, though -- much too expensive and not many chances of success.
Is there anything else that can be done about this?