The term "localhost" refers to the default entry in all modern operating system host files. By default modern operating systems provide a hosts file that provides domain name resolution without reliance upon the Domain Name System (DNS) protocol. By default these host files typically ship with one entry, a domain named "localhost" that points to IPv4 loopback interface 127.0.0.1.
what should have been the focus was "starting a shadow server on the use device, wide open for any application or webpage"
"A feature that allows multiple programs on the same device to communicate without the need for an internet connection"
For a judge trying to rule on a technical case, a poor layperson analogy and lead to a confidently wrong legal conclusion that has serious negative consequences. Thats why court appointed neutral experts are important.
I agree with you by the way, I just don’t think this is one of those cases.
This is also missing a lot of what localhost means in this context (networking, violation of the usually way similar apps and websites work on an Android device, etc).