I have only heard of a couple of people who mangaged to get bids back to normal after being hit (still using the same domain name).
If you did can you state if you got a human review or if it happened naturally after a certain amount of time.
I am beginning to believe that once a domain name has been penalised that you cannot get that domain back in no matter how much you improve your quality score.
I spoke with my adwords rep and she explained exactly what the problems were with my landing page QS. I have since made every single improvement she suggested plus many many more and still have crazy $10 min bids.
Any help would be appreciated. Thanks!
The other possibility is that you briefly increase the bid - are placed at position minus 25 because of you extreme bis & wonderful quality - so actually get charged much less - then you can bring your bid down to more reasonable levels.