It demonstrates the power that multi billion dollar corporations hold in today's society, compared to the individual. He's an easy target so he gets taken down. Linking to copyright material is not a crime here, hence why such cases get thrown out. In addition to that, when's the last time US authorities let someone be extradited for alleged crimes committed whilst on American soil? Never.
The writer of the IT Crowd and Father Ted had some words on the matter:
O'Dwyer, in some respects actually went the extra mile, because not only didn't he host copyright material, he even removed links to that material when requested. Lots of his links were to youtube. Who hasn't shared music video, or TV clips or episode link found on youtube? The stupid thing about all of this is the DMCA works fine as it is. If content is hosted somewhere without permission, flag it and it will get removed. We don't need to go after those linking to hosted content, or people linking to people linking to hosted content. Where does it all end?