I'm curious as to what changed PGLAF's mind. Blocking those specific works was all that the court ordered 3 years ago. Blocking everything was PGLAF's own decision based on perceived risk of further lawsuits about other works. Nothing has really changed to decrease that risk. The plaintiffs may have agreed that those are the only works they own that were in violation, and won't sue about anything else, but any other German who hold the copyright to works are still valid there but not the US still could.
Nothing, really. The other party countersued (technically appealed) because they still want to remove the works completely, even though it is pointed out that they are under US soil.