For #1: You're thinking of either A)HWID ban or B)IP ban, both of which can be circumnavigated fairly easily.
For #2: Only Packet Editing is illegal, using CE will only be able to alter the way the information is perceived at each address, but won't change the information being sent from the server itself and vice-versa depending on said variable. Basically, if CE can change it, it's not illegal.
And for #5: He won't go to jail, he may end up getting his ass sued because Aeria is filled with a bunch of money-grubbing pessimistic bitches but he won't go to jail. That is unless of course he can't pay up the intense fee they'll send his way.
Just needed to clear those up.
1. No, I'm thinking of the new method Aeria is bringing to ban people(shhh)
2. Yes, you are right, but he didn't specify if he was using cheat engine but I doubt he is(probably wrong)
3. You really suspect that someone spending their time trying to find out how to hack a F2P game to benefit without actually spending money would have enough money to pay the fees Aeria would sue them for? Nahh.