We're also not using it anymore on our client websites. We had more trouble with the plugin than it saved us work.
Most of the function you can easily do in your template too. And come on, which search engine still uses META keywords in 2009?
Another reason to uninstall it were annoying things like the forced-reactivation after update and published versions were we wondered if the author tested the plugin at all (or at least made a diff of the changes) before he pushed out the new release. There should be more quality control for a plugin which is used by so many people.
While I don't know the exact reason why Dreamhost forbids the plugin, from a "code quality" view the plugin is really a mess and a pain to customize it. But as long as its working for the users and has no security flaws, it seems a bit hard to to forbid it in the TOS. We also need to remember that the plugin is for free and not every plugin author is a PHP professional. So it is the resposibility of the community to make it better :-)