The report is a lot more clear than the newspaper article.  It seems fairly clear that the seller really didn't have problems engaging in illegal activity.  The fact that he said that he would think about selling the stolen credit cards for BTC makes his case even worse.

That's not to say that the police weren't participating in entrapment, but perhaps there was other evidence not listed in this report that made them think that they were already involved in illegal activity.

It is clear that way more people know about Bitcoin now than a year ago, and you can't really get away with the sorts of things that you might have been able to get away with in the past.