No, the case is not over and Grokster's not DEAD-dead, but this judicial smackdown is not a good sign for the file-sharing icon's long-term survival.
"File-sharing" is one of those terms, like "comics," that get broader and deeper the more you think about them-- what is the Internet, really, but a bunch of shared files? And conducting business on the Internet requires those files to be copyrighted, yet shared. Salon points out that Google may have a bit more to fear than other engines. (Link found via Boing Boing.)