"A point worth noting is that he is being investigated, he is not being punished. At least, not yet."
This depends on your definition of punishment.
If the cops came to your house, took away all your computers, mobile phones etc, some of which may be part of your business, this could easily be thought of as a punishment.
For example, for myself, it would have a big impact on my life. I only use my mobile phone, so I would loose contact with a lot of people. My computers contain a large amount of my personal data, projects, photos, and many other things. There would be a huge inconvenience, and at this point I would already consider it a punishment.
Then there's my work's laptop. Although all my data is backed up at work, there would be a lot of work to set me up a new workstation. There is also the damage to reputation: In this case, I would likely have to explain to my bosses why the laptop had been seized. if it is on suspicion of child porn, imagine what my bosses would think! Do you really think there would be no impact? I could easily see being suspended from work, and irreparable damage being done to my reputation, even if cleared later.
If you run a computer based business, it would be even worse. Even a few months of investigation could bankrupt a small business. The destruction of a business that someone has worked hard to build, ploughed large amounts of money and time into, is definitely a punishment.
I'm sorry, but I do think that even this "investigation" step is punishment. It may be necessary, but it's still punishment.