You almost have to laught at his twisted explanation of how
SEO works. He thinks he's talking to a bunch of 12:00 flashers here.
If they have happy customers who are paying to host their domains on another domain??? then their customers must be amateurs who don't care that their homepage url is both long, and makes a pretty crappy email address extension...
Now for us serious
SEO professionals, this is just too much bullshit to bear. Unbelievable and totally unacceptable. What can we do about this rogue hosting company? This arbitrary domain redirecting cannot continue.