The problem for any hosting company is that THEY are responsible for what is held on their servers - not directly, but they own the hardware so the content of the hardware is their responsibility in the end.
Most responsible host's will take down / investigate / re-instate when they recieve any complaints... It's standard practice i'm affraid.
I know that you feel frustrated that your blog was taken down for a few days whilst the hosting company looked at the case, but you have to understand that the hosting company will have ZERO knowledge of the content of your blog or the subject matter - they have received a complaint and acted on it.
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If the hosting companies are going to be responsible for alleged defamation then at least make them equally liable for financial fraud.
Or make them liable for neither and allow uncensored comment.
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Fortunately it is making the host's responsible for the content of their servers that makes things like phishing site's and child porn hard to get hosted (thank god)