The correct ruling, in the sense of natural justice and rehabilitation, would have been for the judge to direct the plaintiffs to go after the newspaper with the incorrect/outdated information.
Google was just an easy target. These guys got a judge to go along with them and given them relief from Google's search results.
Do this a few thousand times and Google will go the way of Hotbot, Alta Vista, Yahoo, and all the other formerly essential seemingly preeminent now obsolete search providers.
Do this enough and we'll be looking up potential business partners and suppliers using other search engines, since Google will no longer be reliable.
If the newspaper article on the web was reporting inaccurate libel, then the newspaper article should be corrected.