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Hahaha, that some of the best bullshit I've ever heard... no, that would be your standard of made up shit, however the courts see it differently.
The 1600 songs was kicked because they couldn't prove she downloaded/uploaded, traded them - it's in the article. It had nothing to do with fair use and everything to do with a lack of them proving it. They could prove the 24 other songs were pirated.
The mistake was a blanket lawsuit without proof of every infringement, but not a mistake enough for her to be able to come back after them. The 2nd case was appeal, SHE repeated it and got nailed again
And no, you haven't read the transcripts...or you would know why the reduction in songs happened.
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