and removed the songs with bogus FairPlay from people's devices, because they would no longer work.
See that's the thing, it's MY filesystem on MY device.
If the files exploited a hole in the DRM, then the DRM was patched and the files no longer work... fine, the files don't work, but you can't delete my files on my device .
Face it, Apple screwed the pooch and got called out on it. Hopefully they get a sharp smack in the nose with a newspaper, learn from the past and don't do stupid shit like this again, and everyone can move on.
Okaaaay...but, see, first of all, even by the time of the events in the lawsuit, pretty much everyone already knew, if you want to have total control over your device and manage every single configuration and file copy by hand...you don't buy an iPod.
Second of all, what the hell were you going to do with those songs once Apple fixed the bugs? Without the buggy code, the bootleg implementation of FairPlay just wouldn't work. The files wouldn't play, and the way they were put on the iPod would mean that there would be literally no other purpose to having them on there. I don't know if you know how syncing to iPods worked in the pre-iOS era, but while there was a "disk mode" that would allow you to mount the iPod's hard drive as a simple HFS+ filesystem (or, presumably, FAT on Windows? not sure of the details on that end) on your computer, it would not allow you to directly access the music on the iPod, either to add it, copy it off, or delete it.
So basically, once the bugs were fixed, these files were nothing more than junk data, in a section of the iPod that there was literally no other way for you to get rid of them unless you were using one of a few different pieces of third-party software—obviously not supported or assumed to be the case by Apple—so what should they have done? Just let those pieces of random garbage data take up space on the iPod for the rest of its life? Forced you to erase the whole thing just to get rid of them?
Based on your tone, I'm pretty sure your answer to all this would be along the lines of, "They should have just left it all up to me in the first place," but that ship had sailed long ago. And I think that really just brings us back full circle, to "yeah, but if you wanted that, you'd know perfectly well not to buy an Apple device."
There is—demonstrably—room in the market for devices with multiple competing philosophies. At the time, there were a number of devices made by various other companies that would have allowed you to manage your music by hand. Demanding that every single company adhere to your personal philosophy, provided they are not infringing any actual rights or breaking any laws, is not a reasonable position to take.