Yes, Google/Blogspot has been deleting blogs for a while now. It's just finally affecting sites you guys care about. There's even a recent thread discussing it on a gay webmaster forum. If you have advertising or unlicensed videos on your blog you're more likely to be deleted than other blogs.
I tried hosting a few blogs for people a while back and found it a bit frustrating and unrewarding, but honestly I wasn't doing it the way I should have been doing it. The way I was doing it was rather labor intensive.
Do you guys want me to set up blog hosting?
A guy I know and respect (long, solid reputation in porn) has Best Male Diaries - which is blog hosting for sex and porn bloggers. It's the general idea of what I'd do if I set up hosting though not particularly "bareback", but he's done it with more polish than I'd probably manage. [He also runs a bunch of other sites including Best Male Blogs, which you may know.]