peter has his own frustrations, of course. everything seems to be going wrong for him; black cat's bad luck powers seem to still be affecting him, beyonder and mephisto mess with his life for shits and giggles, he seems to do more damage than good when superheroing these days, he doesn't get any good photos anymore and, therefore, he's broke, his relationship with mj is really confusing... the list could go on and on.
in short, the only thing that keep him from hanging up his webs is the fact that his friend flash needs his help and support, and even about this pete's not sure. maybe flash really is hobgoblin, then why should he help a person who's tried to kill him on many occasions?
while pete's struggling with the hobgoblin mess, kingpin uncharacteristically goes out of town on some personal business (ish 284). nobody's sure where he is or whether he's going to be back at all, and a gang war breaks out, because nature abhors a vacuum. peter's trying to break up as many mob fights as he can, but this shit's going on all over the town, so his efforts are like a drop in the ocean.
naturally, daredevil participates in this whole mess, too, and his opinion is that peter has no idea what's going on and therefore shouldn't interfere. he even resorts to cheap tricks, such as prank calls, to keep spidey away from the main action. of course, pete's unhappy about that.
a panel from the comic.
when kingpin's finally coming back, having finished with his personal business, it means the end of the war, and everyone's happy to welcome with open arms (everyone except peter, that is). ned leeds sums it up pretty neatly in this panel.
daredevil, too, chooses a smaller of two evils and goes as far as cooperating with police force and impersonating kingpin in an attempt to throw any dissatisfied citizens or mobsters off the real kingpin's tail. spidey falls for this and gets further humiliated when he discovers the truth. in matt's defence, he's not all that happy about letting a crime lord back into the city and making a fool of his fellow hero, either.
more details under the cut.