> However what are the realistic implications of this ruling for potential future cases?
In future cases, rightsholders alleging DMCA liability will have to produce stronger evidence that a hoster knew about specific infringing user-uploaded content yet didn't remove it. Interacting with what might be infringing content, telling employees/users that using copyrighted content might be infringing (shocker, but this rightsholder really went for that one), and having the discretion to remove infringing content are not enough to establish that the hoster had actual knowledge of specific infringing user-uploaded content.
> How is challenging DMCA 1201 going?
Poorly, if you're referring to Green v. Department of Justice [1]. The EFF lost that case, and I'm not aware of whether they will appeal that particular case.
Similarly, How is challenging DMCA 1201 going?