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It seems proportional to me. I know it's not a fashionable point of view but in my opinion these tech crimes don't get close to the seriousness of violent offences, thefts, drink driving and so forth.
I'm with you. If nobody is going to punish the companies that release software with these gaping holes and then ignore reports of the issues until there is a massive exploit I don't see why someone like this kid should get a hefty sentence. Throw him in jail for a few months (plenty of time for Bubba the inmate to convince him that what he did was wrong) and move on to the world's more serious problems.
-Mike
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