I think what bothers me about this situation is that if he is clever enough to set up the website and revenue stream from the advertising, then he is most likely able to understand and abide by the laws involved, whether they be US or UK laws. At his age (and obvious level of computer expertise), he should be able to understand that internet sites that tie in to US sites or products could also be held to the level of US law.
Regardless of whether or not his venture was legal in the UK (and from what I've read, he was in a very grey area in that regard), most people his age in the UK are aware of film piracy and that it's illegal. Therefore, he had to have known that he was enabling and aiding people in obtaining illegal products, much like fencing stolen property IMO.
If he is old enough to set up the business, knowing that he was skirting the law, assisting people in accessing illegally obtained films, and then profiting from it, then he is old enough to face the consequences of his actions. They make it sound a bit like he was having a lark here, but honestly, he profited over a period of time, to the tune of £130K+. That is NOT a lark. That is a carefully planned business that he set up for profit, and I suspect he knew full well that these copies of the films were illegal, demonstrated by his careful set up of "I didn't actually provide the films, I only provided links to them, like google" approach. It sounds a bit like he deliberately put himself in that position to exploit a loophole in the UK law. Unfortunately, he failed to research US law, and ignorance of that law is really no defence (if indeed he was ignorant of it).
I find that I don't have much sympathy for him, especially after THIS comment from his attorneys:
"His lawyer Ben Cooper said if extradited, Mr O'Dwyer would face pre-trial imprisonment as a foreign national with no ties to the country.
"Mr O'Dwyer is a young man yet to complete his degree and his social environment would be removed from him.
"That is going to impact on his reaction to finding himself surrounded by the sort of people who will inhabit a federal detention centre in New York.
"He would be a fish out of water in such an environment. One cannot underestimate the risks that would pose to him."
Well, what rubbish. He shouldn't be extradited and sent to jail because it would remove him from his social environment?!?!
Poor thing. I guess he should have thought about that before he set up the website.