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This might be a stupid question but it sounds like those attackers access the Tor Server directly (without using relays). If this is intact the case, why does he not just ban those IPs from those offending hidden and seemingly private relays? Wouldn't that solve the problem until they get a new ip?

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They're connecting through tor, not directly. I'm not sure what makes you think that.

This is also as I understood it. It is possible to have a single hop circuit to an exit, but I don't think you can do single hops to hidden services yet. The hidden service would also have to be explicitly configured to be a single hop hidden service (where it acts as its own rendezvous point).

I don't see any strong evidence that the box itself must be a high speed relay, and in fact, I believe that it is his service that chooses the 3 hop path to the rendezvous point and his Tor daemon that cryptographically verifies that path.

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