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I've made the same argument (I guess I'm Harvard Law smart) that Obama makes in that statement numerous times (ask Escorpio) on GFY in the "OMG!N!ggers are so uneducated, crime prone and on welfare" threads that seem to pop up around here every now and then.
What Obama was trying to say is that the Civil Rights movement relied way too heavily on the Supreme Court and the courts system in general to solve their problems when they should have taken the legislative route.
So when a landmark case like Brown v. The Board of Education overturned "Separate but Equal" there was no legislation in place that prevented money from being drained from the urban public school systems once all of the Caucasians headed out for the suburbs. Quality of education suffered because there was no longer any money to pay for books, teachers, and maintenance of facilities. So the Supreme Court didn't do a good job of spreading the wealth (in this case Education). Because the striking down of "Separate but Equal" had a ton of negatives.
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