Well, I suppose they got what was coming to them. The legal precedent might have been scant for their sort of crime, but it was quite clear to me that it was crime. It's sad though, because I still held them with a Robin Hood-esque esteem, and I'm sad to seem them go. They felt strongly for a cause and were willing to act upon it, and while they did make money off the site, it was definitely more ideologically than financially motivated.
It won't stop pirating. Where TPB has fallen, countless sites will take it's place, like a hydra. If anything, it's another martyr for the cause. The real way to stop piracy is for private business to co-opt it. For example, by offering high quality video or audio available to download from an official site which is funded by advertisement and related merchandise sales, sure it's not as much money as you'd get if nobody pirated, but at least you're making up for a decent fraction of a loss that you can't fight with legal proceedings. This, micropayments, and pay what you can schemes are the more effective means of combating pirating.
People don't pirate music because they don't think the artists deserve the money but because people like music, and for many, buying all the music they want to have is simply not an option. Torrent pirating is an interesting phenomenon, because it completely relies upon the altruism of fellow pirates. In public torrent sites there is no real personal incentive to seed your downloads, or even upload files, except to help out other pirates.
In the end, what TPB was doing was illegal. You can argue technicalities like mapleleaf has done, but common sense will quickly tell you that these are only technicalities and it's plain to see that it's pirating. That said, I would say the people behind TPB are less responsible than major uploaders such as axxo or eztv. Bittersweet justice. I don't think anyone really won out of this decision.