Earlier quoted context omitted.
This isn't a wave knocking over a sandcastle or a dog shitting in the house. These are 16 year old kids, old enough to know right from wrong, and with the knowledge and skills to exploit the system. And once the exploit worked, they didn't then responsibly disclose the problem to PHPFog; they started vandalizing, changing passwords, and the works. This is like someone finding an unlocked door to the apartment buildin…
I'm now nearly 25, and the amount I have changed since I was 16 borders on the immeasurable. Teenagers are glorified children. We seem to forget how little reflective capacity we all had when we were teenagers. If I were 16 and hacking some stupid website, I would think, sure this is "wrong", and I might get in trouble, but I probably wouldn't think that it would matter 5 years from then, or 20. Truth is, a criminal…
While I agree that the full force of adult law is probably inappropriate, some punishment should be exacted. Perhaps some sort of injunction regarding limited access to the Internet for a time (to be enforced by their parents, and to include replaying any fancy 'net capable phones with a good old not-even-got-GRPS mini-brick phone for the duration).
If I left my front door open and some kids came in, raided the fridge, broke the TV and ran up a huge phone bill, I would not expect them to get away completely unpunished. I'd not want them put away, and I wouldn't want it on their permanent record unless something particularly immoral was done (harming the cat, for instance), but I would want something to be seen to be done to educate them on right/wrong and act as a deterrent to others. I would also expect to be laughed at for being daft enough to leave my front door open!