People like new things. Netflix will no longer be offering new things. That smells like market opportunity to me.
Acting through the distributors is a feint, which Universal is big enough to attempt (in that they have sufficient influnece with distributors) but which doesn't cost them too much if they lose. Note that they haven't lost yet - The court has dsimissed some of Redbox's claims, but affirmed their right to bring a case asserting antitrust behavior by Universal.
Whether they'll win it or not I don't know, although the judge seems sympathetic to Universal in their distributors voluntarily entered into an agreement with the studio to distinguish between DVDs sold for retail and for rental, and Universal are just asking them to stick by that contract, which predates any agreement between those distributors and Redbox.
I don't know the specific strategic thinking of Universal's lawyers and here, and as I said I'm not a lawyer myself - this is just my reading of what's taking place. I can say that the distribution executives that I have spoken to about this all hate RedBox - while admiring their chutzpah and business drive, they loathe seeing their product dispensed and priced like a bag of potato chips.
Thanks for reposting that opinion, BTW. I'd forgotten how many jokes it contains :-)