(I think the answer in this case is: I didn't take any action to receive the heat. Now the question is: why can't I legally decrypt satellite TV that's being blasted through my brain 24/7?)
Purchasing equipment that significantly enhances your ability to decrypt the signal (eg: a pre-programmed or altered smart card) is where you run into issues.
Additionally, unauthorized decryption of a copyrighted program or movie is a violation of the DMCA, 17 USC 1201(a)(1): "No person shall circumvent a technological measure that effectively controls access to a work protected under this title."
Or they could keep him tied up in court trying to argue his way out of it.
The only reason why he is going to make it out of this okay is the bad press that AOL would get for going after him.
If he used AOL computers (which it sounds like he didn't) they may or may not have grounds for a case but this is really stretching it.