Crystal Cox was clearly, unambiguously running a protection racket, where she publishes scurrilous claims about somebody and then offers to remove them in exchange for a "reputation management" fee. She turned this racket on her former lawyer Marc Randazza -- a lawyer famed for his first-amendment efforts -- after he recused himself from her case. You can get a taste of how ugly this woman behaves here:
http://www.popehat.com/2012/03/30/investigative-journalist-c...
http://randazza.wordpress.com/2012/12/17/this-domain-name-se...
Note that she is now represented by Eugene Volokh, another highly esteemed champion of the first amendment.
Crystal Cox never really denied that the things she wrote were false and damaging; she merely claimed that she can't be held liable for anything she writes because she's a journalist.
The appeals court decided that she does indeed qualify as a journalist in this case. It did NOT let her off the hook for defamation. This is very important. Journalists can still commit defamation. The district court convicted her of that, but it used the wrong test because it assumed that she's not a journalist.
So what does this decision mean exactly? For Crystal Cox it means that the case will be retried in district court, this time using a more precise definition of libel. I think it is highly likely that her conviction will stand.
For the rest of us it's a precedent that modernizes first-amendment protections for the Internet age, the attainment of which was well worth the defense of a scoundrel.