I don't want to defend Dotcom, but what I believe was over the top was the procedure for arresting him - some other posters have made what I believe is a valid analogy, in that the US law enforcement agencies have not proceeded in the same way against Enron's CEO for example - another person found guilty of insider trading and fraud, just like Dotcom. Or Bernie Madoff.
Both did arguably more hand than Dotcom, yet neither had an armed raid against them. In Madoff's case, the assets seizure was handled way more carefully.