This is actualy a perfect example. The specific laws aren't the only concern. once the atmosphere is created where registars are expected to take down domains in response to legal claims, complaints, and such it exists. once this becomes part of their job they will seek to do it with minimal costs and risk. Since the cost of losing one customer to godaddy is so out of sync with the cost of to the customer of being taken down, we can expect these kinds of results.
Shutting down a domain will always be a lot cheaper than any involvement of a legal team.
EasyDNS is excellent, but more expensive. It isn't a good place to park a lot of domains, but a great place to host a few important ones. YC/HN uses them, I've contacted them a few times, nice Canandian group.