Napster's going down. While this court did not explicitly shut down Napster, they effectively did by clearing the way for a lower court to do so shortly. The future looks dim. American courts are loath to contradict each other when it comes to determinations of fact, and even on determinations of legal interpretations (though there is less reluctance in the latter case). So it is highly unlikely that any court will disagree with the assertion that Napster does not constitute Fair Use, nor is it covered by the Audio Home Recording Act. In short, the trading of copyrighted materials using Napster is now explicitly illegal by these courts' decisions. At least in the US.
While I'm dissatisfied with Napster as a solution for my music acquisition needs, I'm very unhappy to see this precedent set. As soon as the new injunction comes out, there will be a fresh blizzard of cease-and-desist letters to Audiogalaxy, Spinfrenzy, CuteMX, etc., except these new ones will refer to these decisions. In plain English, they'll say: "We took them to court and won. If you push us, you too will lose." The legal issues regarding Napster and Audiogalaxy are identical. A loss for them is a loss for us. Somehow I don't see Audiogalaxy moving to Russia or China, or some other country with notoriously lax copyright protection. This is the beginning of the end for all of us.