Also, by deleting the data from the servers—are they not now destroying evidence?

I voted you up because you bringing a great point. didnt think this way. but now going this hm path :) if there will be any FCC or other inquiry, wonder if longterm this will help Path or not.

I'd expect most european countries to fall in the same category. Actually, I'm surprised it's not illegal in the US.

They do fall in the same category, because of the Data Protection Directive. This is not a law, but all EU states interpreted the directive, and enacted it into law, and the law in each country is now basically the same.

Unfortunately, no company really gives a shit about this law (unless it suits them, e.g. when you complain about something, often they hide behind it as an excuse for not telling you something).

Because no-one ever checks up on them.