The coder in this story is an hero (OK, just a reasonably nice guy, not afraid to tell the moronic "analyst" to go to hell), and obviously prevented a lot of damage by actively working against Barr's insane plans.
I feel the tiniest bit sorry for Leavy and the rootkit guy, as they clearly weren't encouraging this stuff, but really, they knew this guy was a whack-a-mole and they kept him on anyway, I guess because his crazy ego managed to close sales. It's really hard to take pity on someone that knows there's a crazy guy using company resources to go on a personal jihad against random kids on the Internet, and doesn't do anything to stop it.
The level of invasion of privacy this guy was taking part in, against children, is pretty much inexcusable. He's not law-enforcement, and should not be allowed to act as though he has a warrant for rifling through the personal lives of dozens or hundreds of children. All 50 states have laws that cover cyberstalking, cyberharassment, and cyberbullying; in a just world, this nutjob would end up in prison. Whether these kids have done anything wrong or not is irrelevant. Barr is a private citizen, and adult, and he ought to leave law enforcement activities to the police or FBI.
Edit: I should point out that I don't think anyone should be arrested for browsing facebook or twitter or whatever. I was a bit rambling in this comment, and the entirety of my thought processes are not exactly made clear by the text. The stuff that I think is probably illegal is the stuff he was doing outside of his actual research: Dropping hints and threats in mainstream media and in IRC about the data he was gathering, using his fake persona to stir up a shitstorm by leaking that a security company was gathering data on the people he was talking to, etc. I had to google cyberstalking to even know if there were laws about this stuff (and there are, and in all fifty states). While I don't know if those laws are reasonable or not, I'm pretty sure he crossed the line into breaking some of them, particularly in the case of his underage targets.