I have no doubt that he knew the system was being used for illegal file sharing. And no doubt he probably turned a blind eye to a lot of it because it generated money.
But he should have been tried and convicted in NZ without the influence of America.
That's not the issue here.
People commit crimes in every country. They should be prosecuted to the full extent of the law. No one is arguing that.
The issue is that you're suggesting that everyone should obey american law, which has been shown to be corrupt and driven entirely by campaign donations; while the locals are arguing that, perhaps, their own government should say...
...use its own laws, to prosecute its own citizens, rather than the laws from another country.
Do you think women should be punished in America for not wearing a hijab in public? That the tenants of Sharia law should be upheld in your country, because they are the laws of another country?
No? Right then, like I said...