I highly doubt that the dutch police would seize an entire datacenter on some trumped up charges. Such cowboy actions are very rare here, in fact I don't recall a single instance of such a thing.
An employee of mine once did some very stupid stuff from our corporate network and premises and the police was very reasonable about it.
The quote you give is about some log files from a server in Italy (and fails to detail whether or not they were handed over), we're talking about seizing an entire datacenter here including all the customers machines (plenty of which were government boxes). Hundreds of businesses were ruined on the say so of some junkie.
Disproportional doesn't even begin to describe it.
Hacker News is really not the right place for a serious conversation on this topic, and jokes would only lead to a flame war, so I will rather abstain.
http://www.eff.org/cases/indymedia-server-takedown/