Um....wrong
The content owner being victimized in the dancing baby case is not the owner of a song playing in the background of a video. It's the mother of a toddler who was forced to take down a video of her son dancing to a track you can barely hear over the noise of the video. That you could even begin to call UMG the victim in this case is utterly ridiculous.
There is nothing about the case that broadens fair use in any way. Fair use is exactly what it has always been and has never expanded past its original definition. Can you honestly say that the video in question doesn't pass the doctrine, very well defined in the law, of fair use? Just because licensing is easier these days doesn't mean that fair use should go away. The ease of getting a license has nothing whatsoever to do with why fair use exists. A win for Big Content in this particular case would have meant a massive over extension of DMCA and the erosion of fair use (which, sorry Andrew, IS a legally defined right and has been for nearly 4 decades, and existed as a matter of legal precedence for over a century before that).
EFF is very much on the side of the individual content owners in this case, whereas a win for UMG would mean that Big Content could claim ownership of a video of your kid because you forgot to turn off the radio before recording. What EFF is doing is making sure that the law can't be used frivolously. Copyright is a good thing. Copyright used to prevent other people from making brand new stuff is a bad thing. This is a case of the latter.