The court case seemed to hinge largely on the fact that she TOLD them the info was there, that it was defamatory, and they chose to keep it up anyways. Had they taken it down, they would've been fine.

So this doesn't seem like much of a precedent at all: If you are told you have defamatory content, you need to remove it. They don't really have to change much (anything?) about their search engine to make this happen. Maybe a link for "need content removed?" or whatever.