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When the alternative is taking things way too seriously and retaining a permanent prostatic timber, we're more than happy to just be playfully cheerful :P
I suppose for a VPS hosting company, you don't really know what sites they're hosting, other than perhaps deducing from reverse DNS.
For cpanel-based hosting it's easy to see what domains people have, and I don't think looking at their public-facing sites (they're on the Internet after all!) is wrong. If for example your TOS says "no porn" and you periodically look at customer sites...I don't see a problem. But it would be different in a VPS environment.
Good point sir. We've specialized in VPS hosting for so long I'd forgotten all about that :P
I've not tried money back. I'm a little conservative and so far providers I signed up are okay.