Really, they are only strictly interpreting the text of the law as written - legislating from the bench is against the separation of powers defined in the Constitution. What needs to happen now is an updated law to clarify this to the original intent (and hopefully grant amnesty to anyone wrongly covered). Doubtful that will ever happen, but that's what should happen.
I'm not sure what needs to be clarified, a repeat offender seems like a common and trivial concept that the District Court completely messed up by tying it to a particular action. The entire point of using the word repeated is to punish a consistent pattern of behavior, it applies to everything from shoplifters to serial killers. Why should downloaders be an exception? For that matter, why should uploaders be singled out in particular? If I screw up and put something in my shared folder that I shouldn't have it's still one bad act from me. That does not make me a repeat infringer even if I shared a hundred songs and a thousand people took the opportunity to download from me. It just means I screwed up big, once. Same way getting into one fight and hurting four people is not the same as getting into four separate fights and hurting someone each time. The former is still an isolated incident, the latter a repeating pattern.