Except you have forgotten a crucial piece of his story. The ISP asked for evidence of spam, he got none. The IPS's TOS specify that sending of spam will violate them, so he can cancel the account if he gets evidence. From what I understand, Spamhaus will not send any, besides saying that the person with the account is on their BlackList. Which I take as a tad too extreme, once a spammer, you can never not be a spammer? And you'll hunt down every account the spammer has and block that ISP's IP blocks?
Anyhow, the whole thread seems to be about spamhaus and their legal problems, from what I have read, it really seems Spamhaus is trying these 'escalation' practises you mention on the US Legal system. "Oh so we fucked up in court, and our domain may be taken away, so we're going to martyr ourselves". The point being, SpamHaus fucked up, and continue to fuck up in their handling of the court case. Why they didn't try for an imeddiate dismissal and repayment of lawyer fees, plus a countersuit is beyond me.
Anyhow, let this be a lesson to all of us, don't tell a court to fuck off till after they rule in your favor.