It seems so odd that this issue should just fizzle out the way it has. How quickly the field of play has been re-shaped in the last few years:
Under the settlement, American publishers can now opt to remove their copyrighted books and journals from Google’s library project or choose to make them available for use and sale. Beyond that, the statement offered few details, not revealing what commercial terms Google and the publishers have reached.
“Its now clear that we can choose to make our works available or remove them from the project,” Tom Allen, president of the publishers association, said in an interview. “We think this clarifies a lot.” Under the deal, publishers that do not remove their copyrighted material from the project can get a digital copy to use.
Eoin Purcell's Blog 
I think a settlement in this was always going to end with an opt in/opt out clause. As you say, time and developments have long overtaken the position of all parties.