That raises the question for me: How does ARIN deal with these folks who are 'not cooperative'?
You have asked a question that most entities that operate whois database will not answer. They make big presentations about warning banners and discuss "mandatory" fields but when the data gets compromised nothing gets done. This is not limited to ARIN, RIPE, etc. it is true of just about all whois operators. For instance, everybody knows DomainTools.com is harvesting and reselling the data in these whois databases yet what formal action have any of these whois operators taken in response? The result of all these rules, restrictions, blocking, and policies is that it inconveniences the people who use the services normally while the people violating the policies continue unabated. This situation is rarely considered when all the policies and procedures are developed so much of that work ends up being useless and people get all bent out of shape because there is a policy in place that is not enforced.