Although your item #3 is above is technically correct, it distorts the story badly:
Nonetheless she could have appealed the penalty,
Yes, she could and did appeal the penalty.
[She] decided instead to appeal the ruling that she was guilty instead on the basis of a dubious technicality which was unlikely to change the final jury verdict.
The word "instead" here is incorrect or misleading.
You call it a "dubious technicality," referring I assume to the making-available legal theory. However, the making-available argument was the linchpin of the RIAA's argument in the first trial, and the subject of fairly heated debate. Personally I consider this argument to be bunkum and balderdash, but federal judges have weighed in on both sides. It's no technicality, it is a live wire of case law.
It was not a pointless retrial -- when the judge gives the jury rotten instructions, a citizen damn well deserves a new trial.
She lost in court, was given a penalty that while high, was actually on the lower end of the possible outcomes.
No, the law says penalties range from $750 to $150k per offense, so the median there is $75375, and so a per-offense fine of almost-$80k is on the higher end of possible outcomes (exceeding the median, to be precise). Moreover, the real story here is that the penalty wasn't just "high," it was stratospheric compared to the worth of the items in question.
I agree with you on the facts of the case though -- the evidence was squarely against her, she (IMO) lied to the jury, and deserves some penalty. The important question is how much, and that is where the debate should lie. Pretending this punishment is anything but manifest injustice and a cruel absurdity is, I think, misinformed or disingenuous.