if your web hosts best response is 'We can not delete the data or block it. Sorry' get out of there, fast!
I'm sorry to hear your site (effectively) got hacked. Your hosts (or you) need to change all the passwords now, tighten up their security and remove that code, I don't understand why they couldn't spimply remove it.
Visitors and the search engines will certainly not want to see things like that, are you redirecting your whole site elsewhere? coz that will harm you a lot, is there any way you could robots.txt out the page with links on, redirect that page to nowhere or anything similar?
I hope you can recover quickly
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