@Gwailo, I don't think you are actually explaining anything.
You express your personal opinion forcefully, but with a complete lack of substantiating evidence to support your opinions, and speak in a patronizing, if not downright disrespectful fashion to your audience.
The assumptions regarding your own technical skill level and grasp of the situation are kind of funny, and unjustified.
I'd recommend that you research "critical thinking", followed by "logical fallacy".
Here, let me Google that for you:
http://goo.gl/INIQG
http://goo.gl/8ZDHv
I fail to see any correlation between his lifestyle and the legality of his hosting service. I see no evidence that his flashy lifestyle determined whether the US Government was going to arrest him or not.
It's possible that his lifestyle contributed to the severity of the raid, but I doubt it.
The Feds went after him because the RIAA and the MPIAA asked them to, and they wanted to make an example of him because his service was the most prominent.
The Feds have a history of making an example out of the top dog in a particular scene when sufficiently well-heeled corporations ask them to, regardless how extravagant that individual's lifestyle is.
They run somebody up the flag pole, because it discourages everyone else involved in that scene, and it's satisfying to the special interests that are demanding the arrest.
Witness the take down of D.o.D. The members weren't living an extravagent lifestyle - they didn't profit from those activities at all. It didn't make a difference at all.
They could have chosen a more unethical group, that actually made money from the scene, or knowingly distributed files infected with viruses or malware, but they didn't. They targeted a largely inactive group simply because of how famous, prominent, and well-regarded they were.
Witness the sentencing of Kevin Mitnick - was he profiting from his activities, or causing real and substantial harm to Sun or Oracle? No, he was simply legendary at the time and a powerful corporation asked them to make an example of him. They concocted a ridiculous damage estimate for his crime, and it was upheld with little challenge.
Dirtbags involved in trading credit cards will not be subject to the same degree of severity unless credit card companies pressure the Feds to make an example out of them.