It's because that statement is not legally correct. Yes, they can take the domain away, but they can't extradite you and prosecute you, unless you're in one of the countries with mutual extradition treaties. It's not the US that fucked up, it's your country that caved to the US pressure.
With very few exceptions (basically, China, Ukraine and Russia), the countries that don't have mutual extradition with the US are underdeveloped, poor, repressive, unstable, theocratic (the Vatican!), or all of the above.
I'm not sure what kind of pressure you think has to be brought to bear to get two countries to agree to extradite. Extradition treaties are the norm, not the exception. Extradition is not a product of American imperialism.
There's extradition, and then there's extradition of own nationals/citizens. The latter happens but is not the norm and many fairly civilized countries, France or Germany† for example, generally don't do it.
† some exceptions related to the European Arrest Warrant apply
With very few exceptions (basically, China, Ukraine and Russia), the countries that don't have mutual extradition with the US are underdeveloped, poor, repressive, unstable, theocratic
-Russia is plenty repressive.
-China is poor and repressive.
-What about Morocco? Andorra? Slovenia?
-Maybe also Namibia, Botswana, Mongolia, Croatia?
There are some nice exceptions, but not a lot. You're mostly subject to full US jurisdiction everywhere in the world. And if the USA police want to sieze your assets, including your domain names, in New Zealand they're going to do so without any trouble.
For now you can smoke in Amsterdam without going to jail in the USA, but only because the US government doesn't care yet.
