The state should appeal if for no other reason, to establish what the law and the role of the SoS is in MI. I am sick to death of judges deciding they can just overturn every damn law they don’t like (especially votes of the public on things like “gay marriage” and immigration).
Unfortunately, the states just don't get it. They are no longer states, but mere provinces of the federal government. They can do only what federal judges and federal agencies deem appropriate.
And that will not change until there is a specific constitutional amendment to correct it.