What this story fails to mention is the content they record is over the air broadcasts (not any exclusive cable content). This changes one perspective. I only watch over the air and streaming content (Netflix, Hulu+, ESPN and Amazon Prime). I get about 40 over the air channels and have a devil of a time recording this content (the box I used does a lousy job). This service would appeal to me.
I have Aereo at my home and we are very satisfied. We pay $8 a month and get a very good quality picture and a DVR feature with 20 hours of recording time. There is about a 30 second lag time compared to regular TV.
I hope that Aereo prevails in this case, but I won’t get my hopes up.