Yes I completely agree Hooper and thought about clarifying that in my post. What I did say though, was "Knowing how alot of people in this biz do things, I can't imagine most of the average webmasters going offshore in a legit fashion."
For example, I've seen lots of GFY'er types asking about how to set up an offshore account and then bring their funds back in thru an offshore Visa card.
Definitely there are plenty of legit and completely legal offshore techniques and methods and the two shouldn't be confused on any level.
I imagine any of the big and successful in this business who have gone that route, have done things correctly and legally.
A lot of smaller guys probably tried to get in on the action by doing it incorrectly and illegally.