I've read a bit of this argument, before realizing that people are quite silly, and are going to have very strong viewpoints either way. There are certain things that are definitive though, and can't be argued.
1. Anyone stupid enough to think they were MEANT to receive a "you win" item on a game based heavily on competitive game play and ranking should be removed from the game anyway. It was an obvious mistake. Whether he should have used it or not is not the point I'm making, it's simply that he KNEW the item was not supposed to be used.
2. The item was not his. It was given to his guild mate, who then gave it to him. Blizzard didn't send HIM anything. That argument, or any strand of said argument, is invalid.
3. The TOS is the law of a game. If it states in the TOS that glitches and exploits are to be immediately reported, you have to do just that. In this case, Blizzard's TOS clearly mentions banning is a possible outcome of failure to report an exploit you are using/allowing to happen. As stated in point one, he knew it was a glitch, he said nothing. They are in their rights to ban him.
4. Blizzard is a dick company, and as such, does dick things to people just trying to have a good time. They cut corners with customer care, they are often impatient, rude, and unhelpful, and they take things over the top. If you were trying to protect a multi-billion dollar investment, it would probably turn you into an asshole too. They could have handled it much better, but chose to swing their ban hammer instead.
I've played WoW on and off, and played Diablo 2 back in it's prime, Blizzard is not a shiny happy company. They have your money, in most WoW players cases, they have your life, if you piss them off they will cut you until you bleed, and watch you squirm on the floor, laughing maniacally in the background as your vital organs shut down one by one. They run the show, and whether they are dicks about it or not, he broke their rules, and they made him pay.
