It is good to have relevant restrictions as conditions for porbation (no alcohol for people convicted of intoxication related crimes), but I don't see any good in a total restriction of computer use for a petty thief (unless he brokers on ebay).
N.B. OOo suffices for most of my business correspondence; I prefer (La)TeX/LyX for the more scientific documents.
Off course this can be fixed by "block redundancy" (like RAID does), "block recovery checksums" or old-fashioned backups.
Apparently the damage was limited to only one site... But similar hacks could be done on other vulnerable sites.
Never call a man a fool. Borrow from him.