Earlier quoted context omitted.
I find the use of "innovation" here irritating. There's nothing "innovative" in 2014 about a service that streams TV over the internet. The only thing "innovative" about Aereo is its legal strategy of exploiting a loophole in the law.
"Exploiting a loophole in the law" - does that phrase really mean anything? Aereo did their system in a way that very carefully conformed to the law. The bizarre system that resulted is a reflection of the contorted, illogical, false-to-fact nature of copyright law, more than "exploiting a loophole". The Supreme Court ruled wrong in this case.
Except for it didn't.
If it's illegal to do X, but legal to do each of A, B, and C, and A -> B -> C does X, it's not surprising when X is illegal.