Not only do they still have an appeal, but the problem goes beyond the Internet Archive itself. Lobbying politicians, coordinating with other libraries, inspiring more civil disobedience, all of which can more productively happen now that we've seen what publisher's limits are as well as how we've seen that publisher profits _grew_ over the period that the National Emergency Library was available.
The appeal would be for the implementation of the restriction both parties have already agreed to. It’s a clear regression from pre Covid. They’ve lost either way.