Yes, iiNet won and the studios lost. Now here's the reaction from the studos' media representative (http://www.abc.net.au/news/2012-04-20/iinet-wins-download-case/3962442):
AFACT [*] managing director Neil Gane said the group would lobby for changes to copyright laws following the decision.
"Now that we have taken this issue to the highest court in the land, it is time for government to act," Mr Gane said.
"The Government has always maintained that content is the key driver of digital economic growth. I'm sure the Government would not want copyright infringement to continue unabated across Australian networks, especially with the National Broadband Network soon to be rolled out."
[*] AFACT is the Australian equivalent of the RIAA/MPAA, or rather, as some Wikileaks memos have shown, they are the Australian arm of the RIAA/MPAA, the control directly coming from the States.
So, the copyright industry's attitude is that "if what we demand is unlawful, we will lobby/bribe/force the government to change the law to our favour". Knowing the Australian parliament, probably they will succeed in a reasonably short time.