Hi,

I would compare it to the economics of vandalism. Its likely less costly to cleanup vandalism and prosecute vandals that were cought, than to make everything vandalism-safe. I read an economics paper about it, but I dont recall its name.

Yes, if we assume that the things stolen were not then distributed (sold) into the crime network.

Back in the old days, Universities were hotbeds of this sort of activity. So there was more scope for young hackers to find their place. Not these days. Is that a good thing or a bad thing?

Federal prosecutors are notorious for grossly exaggerating damages for sentencing purposes. It would be more accurate if one could learn the actual monetary loss, in terms of stolen cash.