I agree with you about this not being a big deal. At this point it's just between two parties who both want to make money off a domain.
I don't know a whole lot about the "Anticybersquatting Consumer Protection Act", but according to Wikipedia:
In determining whether the domain name registrant has a bad faith intent to profit, a court may consider many factors, including nine that are outlined in the statute:
1 Registrant’s trademark or other intellectual property rights in the domain name;
2 Whether the domain name contains the registrant’s legal or common name;
3 Registrant’s prior use of the domain name in connection with the bona fide offering of goods or services;
4 Registrant’s bona fide noncommercial or fair use of the mark in a site accessible by the domain name;
5 Registrant’s intent to divert customers from the mark owner’s online location that could harm the goodwill represented by the mark, for commercial gain or with the intent to tarnish or disparage the mark;
6 Registrant’s offer to transfer, sell, or otherwise assign the domain name to the mark owner or a third party for financial gain, without having used the mark in a legitimate site;
7 Registrant’s providing misleading false contact information when applying for registration of the domain name;
8 Registrant’s registration or acquisition of multiple domain names that are identical or confusingly similar to marks of others; and
9 Extent to which the mark in the domain is distinctive or famous.
Point by point...
1) Kneen has no relevant trademark as far as I know
2) The domain does not relate to his name
3) Kneen has not apparently used the domain commercially
4) The domain is not in use currently other than a redirect to his primary web site
5) I see no reason to think Kneen was trying to divert customers
6) Kneen may not have contacted the plaintiff, but he openly lists the site for sale on his own page. He has not, by all appearances, used the domain for a legitimate site. However, Office Space Solutions made some kind of offer to Kneen that he didn't like, giving weight to the argument that Kneen is trying to sell the domain at a profit.
7) Kneen has not tried to hide his identity
8) Kneen owns confusing domains related to Twitter and FTPAnywhere and possibly with some others I'm not familiar with.
9) The domain name is somewhat distinctive in my estimation, but not famous.
These items are not comprehensive and the courts are obviously free to consider whatever criteria they wish. Knowing how some similar cases have gone in the past, in my layman's opinion, I expect he will loose if this goes to court, but it probably wont get that far. Regardless of any potential fraudulent action by Office Space Solutions, the two parties will almost assuredly settle out of court for an undisclosed sum of money and the Internet will march on.