Hmm, I wouldn't call the Israel; terrorists, perhaps disproportionately retaliating, just as Register 365, disproportionately charge for something which at most uses up one minute of administrator time.
It is less about business acolades, and more about business ethics. It is frowned upon to charge for domain transferrals. It is amusing to see a company get their PR so wrong so quickly towards an IMPORTANT cross section of their industry.
I think the key is, as with my friend who felt hard done by, and is also on this forum, that he was upset, dissatisfied, nothing was done, and when he went to change service providers, he was penalised.
It is not been blown out of proportion, and throughout the various threads there is close to two dozen people who are unhappy with either the server downtimes and/or their domain services. You are right the vast majority do not complain, because they presume this is common practice, just like when Eircom used to charge hundreds for hosting services provided far less by others. The difference here is that people who support a large proportion of Register 365's business were left out in the cold for too long, and many others, who are their "satisfied customers" may be a little upset if an important client visits their site, only to see it is not there!
You are right, other companies do engage in such a practice... but it is not the practice in this country, no matter what the new owners think, and it upsets people, who have to pay such charges.
The point is, for 30 quid a year you should have ownership over your domain, and be free to do what you like with it. If I sign up for a free .tk account, I can move it around, change settings, etc, for some reason, companies think they can charge for something ICANN says they cannot.
I would hope Register 365 will seriously review there practices. If they get away with it, other hosting companies may do the same, hence why we must react to such ignorant and arrogent practices.