absolutely correct. The case was not about whether MPAA could sue Newzbin for damages - it is clear that under English law it can. But to do so, the MPAA would need to show its members suffered loss, and the MPAA could then only recover for their loss. The members' loss has no direct relationship with Newzbin's profits - it could be more than Newzbin's profits; it could be less than Newzbin's profits.
In fact pretty hard to show what the MPAA members' loss is - and this case was about a crafty attempt by the MPAA to avoid that difficulty.
The argument was that Newzbin's profits actually belonged to the MPAA members (in the same way that if you steal my bike, the bike still belongs to me, and if you steal my cash, I can have a proprietary right in your bank account of the same amount). Would be a great result for the MPAA, as they would then simply take the all profit and not need to show any loss. The slight problem was that there was no legal authority for such a claim, and so they lost