catch - if Iwere to setup a honeypot in my environment, someone could use it as a legal defense of entrapment.

People need to seriously stop giving legal advice when they haven't got a clue.
I in no way was giving legal advice. What I was saying is that there are in fact some legal issues with honeypots. If it is a private endeavor then go for it, but for corporations and especially government entities then there are legal issues.