On first pass I was pretty alarmed and thought this was a scary precedent being set. Further down in the comments I believe it was likened to arresting a gun manufacturer for someone pulling an armed robbery, and that the major vendors are getting a pass for the same functionality.

However, I disagree. The functions listed above are not mainstream use cases for legitimate software. I also think of it as the same thing as arresting someone who hosts a child porn or silk road type of website. You may not be doing the crime, but you certainly are facilitating it in a big way.

What I also think, however, is that this is probably a misguided kid with aspirations that exceeded his business savvy. He probably could be mentored into using some of his skills for good, so I hope the FBI doesn't proceed to ruin his life.