Also interesting that a password based on word-and-number games, an approach that has been criticized lately as vulnerable to new attacks using common password fragments, seems to have flummoxed the pros in this case anyway.
Here's one point that I think should be referenced more prominently, maybe in the headline somehow:
Police accessed the memory stick [as part of a counter-terrorism operation] and found it contained ... nothing relating to terrorism or national security.
That is: We convicted this guy of a crime for obstructing a terror investigation, even though he wasn't actually doing that. We used our special emergency terrorism powers to push someone around and make demands that were potentially impossible, but it turned out to be just another false alarm. Of course, the guy we pushed around is a certified scumbag and he doesn't look like the sort of white-bread upstanding citizen that most readers of the article imagine themselves to be, so we can count on you to not get too worked up about the whole thing.