The techcrunch link is by far the better source for this story.
Aereo's entrie business model was based on the 2007 2d Circuit decision they discuss there, Cablevision. This is the decision that has basically made cloud DVRs legal, and the legality was premised on the idea it's everyday folk at home who are doing the recording, and that Cablevision just gives them the equipment to do it. It's like recording a show with your VCR, but your tape is in the cloud.
Aereo took a look at that decision and figured out a way to essentially do the same thing by giving everyone an antenna and their own storage. The home user controls everything, and instead of only the VHS tape being in the cloud, the antenna is too. They tailored their entire business plan to the technical reasoning of this opinion, even though the judges who wrote it were clearly not thinking about what Aereo ended up doing. It was a hugely risky decision to adopt this strategy, especially since the precedent they were relying on was only from the 2d Circuit, and not the Supreme Court, but they obviously thought the potential payoff would justify it.
You didn't have them losing this decision, and you didn't have them losing the fight with big media lobbysists and lawyers: you had them losing because of your projected death of big media and the refusal of consumers to pay even $8/month for broadcast TV.