I guess in theory they could lower your limits, too, though the beef most people have is with the interest rates (as a majority of people - myself NOT included - carry balances).

There have been stories about people being late with other non-revolving accounts (utilities, car payments) and this has triggered a universal default as well.

Congress is (supposedly) trying to make it so that the CC issuers can no longer do this, but as you probably know, they have a very powerful lobby in DC. One bright spot is Citibank, which recently abolished universal default clauses for their cards on their own - before the feds have a chance to force them to do it.