Little public interest in the secret service pursing a 25yo megalomaniac moron, who thinks installing spyware makes him the hero against the forces of institutional evil.

I imagine apple contacted the secret service in the first place because they weren't sure what else he'd done, other than, installing spyware across NY's apple stores.

Once they realised it was just an art project, I imagine they backed off to be kind, not because he couldnt be prosecuted. He clearly violated the CFAA

So you have it all figured out, including motivations not expressed in the piece.

Of course they're not expressed. I did however go and read articles from 2011, which give a clear account consistent with my interpretation.

Your descriptions of a mustache-twirling villain are overstated to say the least.

my impression was that apple initiated contact based on an assumption that i was running a keylogger or other information that could be used for identity theft. they quickly learned it was an art project but decided to apply force via the secret service to keep it from gaining too much publicity. after that caused a bit of a streisand effect, they decided not pursue a civil case. i would guess that the judge decided not to pursue a criminal case because it would have been an obvious waste of resources.