In reply to:
As it turns out, the discussion here is somewhat moot. My friend has decided to take her business elsewhere ...
I see. Sounds like the problem is likely resolved to everyone's satisfaction. 
In reply to:
While DH repeatedly insisted that my friend abide by the rules, they equally consistently refused to state exactly what the rules actually ARE, since it is clear that the rules posted on this website are not being followed by DH.
Well, we will will never know about some of that, will we? I would bet that if there was "repeated" communication from DreamHost about the issue ("dreamhost repeatedly insisted that my friend abide by the rules") that there was a real effort on their part to communicate with your friend.
I have not seen anything here so far that authoritatively, or convincingly, indicates DH "refused to state what the rules actually ARE", and I have no way of knowing what you are referring to when you claim "the rules on this website are not being followed by DreamHost". What website are you talking about? Between the published Terms Of Service, the Abuse Center clarifications, and the DH wiki, there should be no difficulty at all in determining what the rules are; there is considerable difficulty ascertaining from your story about your friend as to what actually happened.
Your most recent statement above that DreamHost "repeatedly insisted" your friend abide by the rules indicates to me that they made considerable effort to make sure she understood them.
In reply to:
I feel badly for my friend, and feel that DH needs to take a good hard look at their rules, and perhaps determine that a "best practice" in the future would include being more transparent about what might constitute an infraction.
I understand that you feel badly for your friend, but I don't feel DreamHost has been less than totally "transparent" in any way. In fact, while they have gone to considerable lengths to detail what they consider to be an infraction (see the abuse center, anti-spam policy, and TOS), *you* have been considerably "less than transparent" with the details of your friend's "situation". That's fine; but doesn't make me inclined to believe you have accurately and completely detailed the circumstances. On the other hand, I have a long experience with DreamHost's "transparency", and am quite comfortable with them in that area. 
In reply to:
I have always recommended DH to friends and business associates, but I feel that they have acted unfairly here.
That's fair enough; we are all entitled to our opinions.
Merry Christmas!
--rlparker