It's pretty sad how so many people on a PC enthusiasts site don't understand the concept of modding. His only actual crime was changing his personal hardware to suit his needs. If he was a pirate, they could easily sue him for piracy and the issue would be clear cut, but that's not what's happening here.
Still don't get it? Let's put it into perspective. Let's say the PC industry decides to release one PC with a preinstalled set of software. You are not allowed to make any changes, not to the hardware, or to the software. You will use that system with those programs, period. Sounds crazy? Why would it be, after all, you COULD mod that PC to play pirated content. By your own logic, computers should be locked down completely to prevent the possibility of modification that could lead to piracy.
Why stop there though? There's much greater threats to the world. Let's make all weapons illegal, they could be used to hurt people. Let's remove all cars from the road, they could hit someone. Shut down hardware stores, do you know what you could do to someone with garden tools?
Laws are not broken on the potential, but the act itself. Until he is convicted of piracy, piracy does not weigh in to this issue at all. The fact that his mod activated a feature which then allowed others to make piracy hacks is irrelevant, because modifying a piece of hardware in itself is not a crime.