He knows what he did was wrong. He admits as much in his magnum opus. Just not wrong enough to be banned from AdSense.

I know he's wrong and I know exactly what he did wrong: he enticed visitors to his website to click on ads so that he makes more money at the expense of advertisers. You cannot do it for reasons that are both obvious and clearly speelled in AdSense agreement.

He is unwilling to correct the problem. He's even unwilling to admit there is a problem - his whole argument to favor theory of cruel and unusual treatment from Google is based on his fundamental belief that he really did nothing wrong. Plus irrelevant personal details designed to trigger sympathy for him, as a person, and detract attention away from the facts of what he did.