Pirate Bay Founder Wins Back Passport from Swedish Embassy
torrentfreak.com
torrentfreak.com
Extraditing him to Sweden makes it harder for him to be extradited to the USA - in effect, you then have to go through extradition procedures in both the UK and Sweden.
This is an interesting, useful, and relevant article (and published by a left of centre source at that): http://www.newstatesman.com/blogs/david-allen-green/2012/08/....
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It's theoretically possible that these accusations have been concocted to destroy his reputation (in the way that you could claim this of pretty much any public figure [or pariah] who is accused of a crime). But I think it requires a pretty big leap of imagination, and no-one has produced any actual evidence to suggest it is the case (beyond vague insinuations of Swedish obligation to the USA). And, more fundamentally, I think all involved have a right to resolve the matter in court.
You can't give a free pass to people who are accused of rape simply because it is theoretically possible that it's a plot designed to smear them.