I'm not sure what GoDaddy did to you but the Terms and Conditions are fairly common.
Godaddy is the most annoying registrar. They don't respect your property rights. Domains are property. Their terms and conditions don't matter. They are all incorrect.
Cancelling a domain registration service does not equal to they taking over your domain. It means they don't want to provide a registration service for your domain. It means they should tell you to move your domain elsewhere. It does not mean they will take over and sell it.
As far as I know Moniker has never seized a customers domain. If you ask moniker what it means to cancel the registration service they would tell you that it means you would be given time to transfer out your domain.
Godaddy will seize all your domains if there is a problem with a single domain in your account. This is how they see the issue. They have seized domains before. They took over a customers domain and sold it in auction. That domain was familyalbum.com. There are many articles on the internet.
Godaddy is the most untrustworthy registrar. Your domains are not safe at Godaddy. Just because you didn't have problem sop far does not mean you won't have in the future.
The only reason they are not seizing domains these days is because it creates too much bad publicity. But if there is an excuse that would make them act correctly in the public eye, they don't have a problem seizing your domains. This is what Godaddy does.
Godaddy is the only registrar who will lock your domain if there is a content on your website they are not happy with.
You can never know what might go wrong. Maybe you will send a mass email and they will say it was spam. Maybe you will have a credit card payment problem. Maybe you will have a content problem. It doesn't matter. You risk losing your domain.
Here are some Godaddy stories:
http://nodaddy.com/#horror
What I don't like about Godaddy:
1. They don't see domains as property that you own although this is how most other registrars see it
2. They trick and charge clueless newbies for domain parking
3. They grab customer domains and sell it on auction
4. When you make a paypal payment they create a recurring payment inside your paypal account giving them access to all your money. They don't allow one off paypal payments.
5. If there is a problem with your domain they charge you a fee to deal with the problem. For instance if somebody claims who send spam they can charge you $199 processing fee and lock your domain until you pay.
6. They lock your domain for 60 days to transfer out if you update your contact details.
