Just to answer a couple of points.
1) DDoS was common before we did the hosting, so developing a new solution for self-hosting would not miraculously solve DDoS issues.
2) It's not just about developers earning a bit less money due to piracy. I don't think you understand the severity, when an illegal master server was able to replicate our services (allegedly 'free' although that wasn't quite true) we didn't earn enough money to live on. This isn't about asking for sympathy, it's a simple statement of fact that if you can't earn enough to pay the bills, you have to get another job.
There are still more things to try, of course I don't know if they'll do much good. The trouble with DDoS these days, for everyone, not just LFS developers, is that every time you increase your defences, the attackers just come back with a bigger attack.
We're on the same side here, I'm working long days on this.