Re: The law
Of course you forget the (very minor) detail, in order to get the data backup you have to pay all the egress charges when you have no money. Then there is the time etc. Depending on how much data there is it could take months to get it back. Microsoft are not supposed to be able to access it so the onus has to be on the owner. This is yet another case where the law has not actually caught up with all the cloudy stuff.
How about the case where Apple refused to reset a password even though the Executors had everything legally required to execute the will?
Unfortunately big business is unaccountable to nobody, yes the occasional shareholder but they are essentially free to do whatever they want, when they want and how they want. If you get caught, just cough up the fine or pay the appropriate fees (bribes) to the politicians.