Change laws, don't break them.
In my humble opinion, the kid was trying to get round the carry law. He had the loaded magazine easily accessible and no, I don't believe it counts as a container.
As to the explaination about not having his LTC, I personally believe he had just not bothered yet. He had the gun only a couple of weeks.
So, technically, he was illegal. Now, some posters here were pretty unforgiving on the 'Felons and guns' thread, but are saying that this guy should be let off. Personally, I agree. He just needed a scare. He obviously passed a NICS check and his demeanour to the officer seems to be polite and respectful.
However, the overall point is that he should learn from this and move on. It's not up to us to follow only the laws we want to. It is up to us to change laws via our elected representatives. Whether you agree with the law or not, if you take that out of the equation, its pretty clear to me that he was trying to work his way around it.
He was very lucky. Not sure if illegal carrying in PA is a misdemeaor or a felony, but either way, he would not have been carrying for a while and may not been able to own a gun again.
Still, all in all, exactly the right outcome.