Yes they do reinstate them.. however... for example.. the official msn group for artistic minds inc ( pay to use art license company) had to converse with msn as to what the 'violation' was and basically plead and beg to reopen the group.. it is open as we speak....
another big group - girl in my group- also had to have discussions with msn as to what they need to do to not be in violation.... there was some graphic from well over a year or so ago... she couldn't even dig to find it ... after "reasoning" with them ( like reasoning with a drunk) she got her group back...
another group - an artist suzan woolcott- associated with AMI btw- also lost her group the same way.. i don't know how they got it back, but it did come back...
didn't last long before it was shut down again...I'm not sure it's back...