This is what has been happening to the Welcome to Quebec site. (since moved) This is also what happened last year to a web author in Ottawa, who ran a I Hate Lucien Bouchard site.
In the Ottawa case, even though the Ontario Provincial Police legal counsel deemed the site was not illegal, his provider pulled the plug. Read all about it on the above link.
Looks like Electronic Frontier Canada (EFC), an Internet freespeech watchdog, has been following the story too.
Here's an article by David Jones, professor at McMaster Univ. and President of EFC.
The EFC also have a reproduction of an Ottawa Citizen article about this site. It's a lot closer to the truth than stories shown on French language TV stations and newspapers. But then again, these are the same people who told us that were only 10,000 people at the Montreal Unity rally, by best estimates there were aprrox. 100,000 people present.
Even some Francophone technology magazines such as Direction Informatique would seem to agree with the idea of Free Speech on the Internet.
Others, like Cyberie Chronik just lump this site together with all the other events in August that had the Separatists complaining that it was "Quebec bashing" time.
Internet Content-Related Liability Study - Hate Propaganda An excellent resource site.