I would expect if the High Court of New Zealand decides the entire case is illegal and won't extradite him, they would stand up to the US/DOJ/FBI and try to get his assets unfrozen, property returned, etc. etc. If the US/DOJ/FBI don't do so, they would be breaking NZ law.
You might say the US will just laugh in their faces, and while that might be true, it would be horrible publicity (which the US clearly doesn't need right now) and would probably just provide another reason for the rest of the world to give the US the middle finger in general.
It wouldn't be the first time little NZ has stood up to the big guys [1] (see specifically 1984)
(This was a very, very big deal when it happened)
[1]http://www.greenpeace.org/new-zealand/en/campaigns/nuclear/n...