The GoDaddy "Deluxe 4GH" plan costs $6/month and could easily hold 14 web sites, and one feature they offer at this stage is "Multiple Web Sites: Unlimited".
At first it sounded like GoDaddy had simply rerouted all of her domain names to null addresses, when they could have just rerouted one of them. But no, they were providing the hosting service. If she put fourteen businesses on one account to amortise the cost among them, then she is responsible for linking them together, not GoDaddy. Presumably GoDaddy would have just shut down one hosting account -- the one that held the infringing content -- but the problem is that she only had the one hosting account.
This is why I try to keep abstraction layers. The people I research with don't hang out with my Ultimate (as in frisbee) friends or my web development colleagues; the Ultimate folks are the only ones I'm letting friend me on Facebook, and I make it a point not to preach my religion to any of the above.
Spolsky is correct that all abstraction layers are leaky, and these are too -- my professor has met my father for example, and the folks at work know that I say something quietly before lunch every day -- but there is a great value in compartmentalising. Robert Frost's neighbour confidently asserts, "good fences make good neighbours" -- I guess it's more that good neighbours respect the fences and use them to lower your own mental stress and drama.
Candice could have used a good fence between her charity and her infringing account.