They didn't reject the holding-- nothing they did conflicts with the holding of any SCOTUS decision. They did follow the Supreme Court's dictum, which is generally what lower courts do when there is no binding precedent on point. Not terribly bold of them.
Their holding, IMO, will be challenged in the future.
I'm sure it will be challenged in the future, but I strongly doubt it will be rejected by any court.
And "determining" that a child born to an alien parent is in fact a "Natural Born Citizen" came from what SCOTUS holding?