This is why we need a completely different internet infrastructure. Read this.
The problem is that there's no way to control who can create what website and what they can do with that website. Some people call it freedom but we have to remember that the internet wasn't designed for us humans to use. It was designed to be used by the military and educational institutions at best. It just so happened that what was created for that translated nicely into the public WWW and then into what we have now.
Ideally, we need IPv6 to come around. With IPv6 every person could have their own IP address and we would no longer need natting at the ISP level. This would also enable someone to use an IP address just like a phone number. It's yours, you can be found at it, whatever happens at that address you are liable for.
That's one side of the equation.
The other side of the equation comes to the legality of proxy servers and proxy networks. Are those needed anymore? No. Writing proxy servers out of acceptable internet protocol would help things greatly. Make it illegal to run proxy servers.
With these two things law enforcement could move into the 21st century. Gone would be the days of hunting down grannies for downloading music, you would know who downloaded music. Most importantly it would be easy to find out just exactly who is taking part in a malicious DDoS attack.
With IPv6 it would also be easier to crack down on server owners who use their servers for malicious purposes. Interesting times are ahead.
Call it infringing on internet freedoms if you will but the internet wasn't designed what we use it for. Something needs to happen. Will it? Probably not.
Oh and check out Squarespace.com they are supposedly resistant to those kinds of things
