If the images shown are from the raid, then he was committing copyright infringement. Selling a hacked system is a bit of a legal grey area depending on your country's laws, but it's almost always illegal to sell pirated software.Why can't people just mod it themselves!? And what exactly was he arrested for? Piracy?
And why can't people hack their own systems? Not everyone knows how to. I know a lot of cases people are just randomly guessing. Some people would rather pay to have the work done for them.