The practical thing happening here is that the prosecution almost certainly could build a case on the evidence they have, but in practice they don't have to because the judge is willing to hold the guy in jail on procedural grounds.

Again, I'm saying there is a good argument that this was a bad decision and that the All Writs Act shouldn't be construed to allow this. But that's an academic point. In the real world, chances are very near zero that there is any "injustice" going on in this particular case.