FBI routinely creates, plots, then recruits people for made up terrorism plots, then arrests them
The DEA, in partnership with the ATF, recently ran a operation where they recruited people to rob fake stash houses, then arrested the people that were coerced into the plot
Entrapment is often used in prostitution stings as well.
None of these instances are tossed by the courts, entrapment is very much alive and well in the legal system
>>>>For the most part wether the fbi was operating this server or not the people who visit the server came there out of their own free will in an attempt to acquire child pornography.
While true, there are some very significant problems with this. For decades now the basis of the law against viewing child pornography is that each time the image is viewed the child is victimized. Thus by running the server for even 1 second the FBI was, according to the law, victimizing children in order to catch criminals.
If you then claim is no children were actually harmed by the FBI's action then one has to start looking at the very foundation of the Child Porn laws.
Personally I think the ethical and moral position (and should be the obvious one) is that the FBI should not, under any circumstances, be distributing child porn. Period.
Edit:
Sources for above can be found in this comment https://news.ycombinator.com/item?id=12432737