Maybe a shitty host will do this to you. I currently work for a web host and our support team will bend over backwards if that's what it takes to get a domain transferred away from us.
The title of this article should be "Don't do business with companies that utilize shady and unethical business practices."
I totally agree, I'm one of the owners of Site5.com and we would never stand in the way of someone moving a domain away. We leave it up to the customer if they want to register a domain with us or other registers.
I would also mention it is illegal under ICANN rules to prevent customers from doing this,
thanks, Ben
The title of this article should be "Don't do business with companies that utilize shady and unethical business practices."