I agree with you, but for a different reason, assuming I am even understanding what is happening here, I'm not American.
My reading is that under the previous system, a single district could prevent an order federally, even if every other district judge agreed with the new order.
I don't see why a single district should be able to influence the entire country. I would understand that they could limit powers in their district, and potentially challenge laws at a state level, and then federally.
Let's look at how this could have impacted a topic that gets my attention in the US, gun laws.
I'm definitely left, so let's say a president came in and made some order about changing gun laws and made it harder to get a gun.
It seems to me, that if that were to occur, a single judge in a gun-loving district could block the order universally for all the other states?
That doesn't seem right. It does make sense that they could say that law doesn't apply to our district, and we will challenge that law being applied to our state and if the state agrees, they could then challenge the law federally.
I'm obviously making up a ton of stuff about a system that I don't understand.