I like the approach taken by Nominet (.uk domain registry). If you are an individual and you're not trading via your website you can hide your personal details from whois. However, companies and trading individuals have to display it.
I think most registrars offer a way to "hide" your whois data; I think the problem here is that this "hidden" data leaked anyway.
Sorry, made a typo. Nominet are not a registrar, they are the domain registry for .uk domains. Similar to how Verisign are the registry for .com domains.