As a biochemist, this seems to be a very complex issue that has been unnecessarily politicized. What happened with this report is interesting in and of itself, but I would not draw any conclusions (or make any inferences) from this, frankly.
Besides being politicized, views on this issue will also be affected by personal experience. I've lived much of my life in Oregon, where there is no fluoridation. It seems to be widely believed by dentists here that people growing up in Oregon have poorer teeth and that it's largely because of the lack of fluoridation. I'm not arguing the merits, just pointing out the cultural belief.
There is a cultural/political side of the question, however: given that we know water fluoridation is safe and relatively efficacious at preventing caries, are we willing to pay for it and actually do it, and how much do we want to listen to people’s arbitrary feelings on the matter? That is a valid political question.