Maybe this is a moral failing on my part, but I am still trying to figure out what was "wrong" about this. They found a bug. They exploited it. They asked other casinos to enable a function that allowed them to exploit it, but it was still a valid configuration for the game.

To me this sounds like IGT should have lost their shirts, but instead the NGC, local police and the IRS can recoup the loss from the individual and emerge unscathed?

I still cant see how this is wrong. But then again I think if you are good enough to count cards in blackjack you should be able to profit as well...