As welcome as this news may be from technical and common sense standpoints, I'm not sure if it's a good thing from a legal one. This whole affair seems to me (and I may be wrong) like one judge deciding that the law is bad, and thus that the suits are meritless. While this seems great as long as you agree with the judge's view, I think it opens a pandora's box.
Imagine if a right-wing Christian judge tosses out anti-creationism lawsuits, or pro-RIAA judges toss out anti-RIAA lawsuits. Even worse, imagine a judge indirectly on the RIAA payroll! Granted, these are all a long ways away from this case, but I believe that applauding this judge's actions is the wrong reaction.