I think that the issue was precedent: neither ISP gives a damn about user data, unless they can sell it for something; but I suspect that neither ISP wants solid legal ground for any asshole who managed to pass the bar anywhere, or hire somebody who did, to bombard them with (actually legally weighty, rather than merely spurious) demands at will. That would be a more or less unlimited headache. If Steele were the only one in the business, and was only pulling the con a few times, giving him what he wanted would have been easier. But I suspect that neither of those things is close to true.
