Warning, what follows is just an opinion, and much like @#$holes, they all can stink, so you've been warned ;-)
The successful appeal makes sense in terms of black letter law, but the ramifications...
I'm thinking about automobiles vs. horse and buggies at the beginning of the twentieth century. Today's relatively inexpensive "prosumer" drones, with 4-5 mile horizontal ranges and 17000 flight ceilings, are analogous to the new motor cars and trucks of the 1910-20-s. The glow plug tethered Cox or VHF RC "hobby" model airplanes of days-gone-by are analogous to ox carts and horse wagons and buggies. Okay, with that picture in mind here I go.
The 2012 Modernization Act's hands-off exemption for "model aircraft" needs to be amended or replaced with law which enables the FAA to regulate model aircraft so that today's model aircraft flying in the NAS fits in with the realities of the "motor cars and trucks" coming on today. The existing two types of flight operations, Part 107 and Part 101 is confusing to many, and has to go. It burns me up as a certificated Part 107 pilot, that I have to go through a lengthy COA process to fly 4 miles away from a Class D airport, and a "hobbyist" wink wink, nod nod, can fly the same aircraft the same day by calling a buddy at the airport tower beforehand. Until this recent appeal, my commercial sUAS registrations were for for each of aircraft, yet a hobbyist flyer can have multiple aircraft under one number. I can't think of another instance in aviation wherein a higher pilot rating has less privileges than a lower/uncertificated one.
I know, I know, aircraft registrations and pilot regulations will not stop bad actors from doing stupid and dangerous things. That said, with no regulator or regulations or registrations in place, there is no definitive chain of evidence to, or consequences for bad actors acting badly other than the risk of tort litigation, which is a whole other barrel full of monkeys. My biggest fear is that if the "hobbyist flying" starts spinning out of control with the new modern drones, then we will be facing backlash legislation/decision making, akin to recent rule making in Canada, China, and now in the Netherlands.
Happy flights and safer landings