Just continuing to follow the story, and it felt interesting enough to merit its own post rather than just an addition to the comment thread.
Although it has not put the issue in quite such stark terms, Public Knowledge is essentially seeking a ruling that says that the sale of consumer software is, in most circumstances, a sale, pretty much regardless of what the agreement that comes with the software says. If the court agrees in spite of MAI and its progeny (and the ruling survives certain appeal) then U.S. copyright law would protect, among other things, making copies of purchased software in RAM in order to use the software — no matter what the “license agreement” says. Resolving this issue in favor of Public Knowledge would call into question provisions in EULAs governing nearly every virtual world and multiuser online game, as well as EULAs for other software.