The LFS team have made no guarantee over the content of the servers that are managed by third parties. Since this is the entirety of the LFS servers currently out there, I'm not entirely sure what you're after?
The situation was explained by the lack of config backups by 500 servers staff. If LFS server configuration backups are not explicitly covered under the contract that 500 servers customers enter, there are no grounds for 500 servers to make any backup. If this is the case, the issue can be said to be with the individual customers?
There is no invasion of privacy, there is no abuse, there is no guarantee or statement that there will be no advertisement of services on LFS servers, there is no abuse of "admin rights" (by this I assume moderation rights*) that I can see. Anyone who is a member, or not a member, of the LFS community is able to do this by spawning LFS servers. Were this to be anything other than a known server provider who has been known to have issues over the last few days, I could consider your point to have merit.
* Moderators are volunteers who are unpaid and have no control of anything within the LFS infrastructure outside of moderating the posts made in the LFS Forums. Moderators have no control over the master server, and generally have no knowledge of the LFS development procedures or planned features that the LFS general public are not already aware of.
Edit Damn you franky
I've told you before, don't post at the same time as me, it makes me look like a cock