"US companies that export data are fundamentally illegal in Europe."
Actually it's any company that exports personal data to the US.
"That's because the recipient of the email - in this case you - export the data to a third party without the sender's permission."
Actually, this one doesn't fly. The sender of the email exported his own data.
"Brussels doesn't have the institutional machinery, or maybe even the brains, to fix this one."
Or the balls.
'the US doesn't recognise an "abroad"'
I'm not sure of that. The abroad where companies like Apple accumulate their income outside the US tax regime seem to be recognised OK. The Microsoft case seems to hinge on the fact that for whatever reason (and none that I can think of do the originator of the case any credit) someone decided to try to bypass the existing mechanism which the treaty with abroad would have enabled to try for a warrant in Ireland. And AFAIK the basis of their case is that records which Microsoft hold in trust for other people are somehow Microsoft's own records which they're entitled to demand because Microsoft is a US company. I don't see any problem with them going after records of a US company such as Enron wherever they're held.
And I assume that the Computer & Communications Industry Association largely represents US companies interests. If the ruling means that work formerly done in the US has to be done in Europe its hard to see how it isn't going to help the European IT industry.
One of the interesting aspects of this is how it's going to extend. Will the court rule it impossible to process personal data in the UK? Or France? Or India?