Compare it to less onerous laws. Right now, any officer in any state can ask you a question while you're walking on the street. You're entitled to ignore it and keep walking, and they can't just arrest you for that. However, let's say it is 2am and you're in a residential area. Now, the officer might have some concerns as to why you're walking around. In the interest of safety, he wants to know your name. When you're uncooperative, he might have enough probable cause to think you're there for criminal reasons. What if he sees what looks like a burglar's tool? (most states criminalize burglar tools).
If this law is enforced reasonably, it won't be trouble for anyone but criminals. If it's enforced unreasonably, it'll be wildly unconstitutional. The question is going to be the police, ultimately.
(b) He's going to just declare bankruptcy anyway, so it's rather silly as an aside.
(c) Separately, his lawyers appear to be grossly unable to handle the case; their "fair use" defense was beyond laughable, and they failed to preserve the easiest possible appeal (which would have, at least, probably allowed a retrial).
The truth is, the best situation is to educate the child enough that they can be trusted to navigate the online world without either visiting porn inappropriately (i.e. w/ anyone else around) or downloading malware. The reality is, you have to educate children while using some protections against their mistakes.
So, teach her about sex, etc. Explain the issues as best you can, and discourage her from visiting it too much (and certainly set rules). But don't pretend she'll never check it out. The truth is, there's no harm in her checking it out occasionally.
Malware, on the other hand, is actually destructive, hence the use of spam, virus, etc. filters. So, teach her about it, hope she doesn't accidentally infect your system, but use tools to support her.
The key idea is to support your child's growth, not to restrict it.
Here's the thing: a lot (i.e. the majority, actually) of these technical arguments you've referred to here are just silly. For example, you complain that the RIAA evidence links only to the computer, not the user. This is, of course, true. However, in the case of a family home that means the prosecution can narrow it down to the household members, so your argument would merely be "Well, you don't know if it was the dad or the son, so you can't sue", and that'll end up just bumping into group liability (which I won't bore everyone with here).
In the case of a shared computer, you'd have more of an argument, e.g. one a library computer or whatnot. But realistically, how many prosecutions have involved such a machine? So far, as far as I know, all the prosecutions have involved machines in private homes or apartments, so what exactly are you arguing?
Everyone (especially on forums like this) likes to jump on option (c), forgetting the basic problem that a system is definitely not automatically bad just because it's complex. Far from it, when you're describing a tremendously detailed world such as our own, it is inevitable that your laws would become complicated and labyrinthine.
I don't see the conflict. In fact, I think this case is ridiculous. A game should be fair? Ok, I am all for that. But simply building a tool that allows people to play unfairly does not constitute a crime or a civil offense. It might be immoral, but then my moral may be different of yours. Perhaps if you were in a tournament and someone uses a cheat, you could sue the cheater (and not the developer of the cheat, unless he happens to be the same person) for damages. But Blizzard? What damages did they had?
Besides, I don't see how he could have infringed their copyright since he doesn't distribute the game. If people cannot meddle with their own RAM because what's in there is protected by IP laws, we live in a very fucked world already.
I don't think you read the documents involved (including the stipulated damages issues already posted here).
Basically, Blizzard isn't just selling the software to users, but also the ongoing experience of the MMO which involves not only operating the servers and updating software, but also ensuring that the use of the software by legitimate customers isn't interrupted by illegitimate users.
A tremendous number of players find themselves disrupted by these Glider bots, and that's the damage.