IANAL but it looked to me like Aereo made a serious error in not simply arguing that it is an antenna with a (very) long cord. I guess they thought they could scare the court into allowing Aereo in order to avoid some unintended consequence but I just don't see that. Coupling it with the DVR functionality also seemed like a needless mistake.
I'd like to know what the court would think about a service that really is not much more than an antenna with a long cord. But doesn't seem like we will get that here.