The Grokster decision won't much affect illegal file-sharing

Yes it might stifle technological innovation, but it won't stop or perhaps even diminish illegal file-sharing.  You might recall that the major file-sharing service KaZaA is missing from the suit, as it falls under Australian law.  Yes there is a suit in Australia but what matters in the longer run is the strength of the most permissive international ruling.  Our Supreme Court is unlikely to fit that bill.

Reason.com adds more.  David Post has a detailed analysis of the case.