If I read the article right, "For example, a straight male seeking a room could only search profiles of those users who had indicated during registration that they would live with a straight male" is the crucial issue in this case.
The court, apparently, has no problem with users saying anything that is illegal eg discriminatory as the article at first seems to imply. Roomates has filtered the information its users have submitted to provide different content to different users (not different content to the same users depending on how they search or browse the site), so the judgement does not extend to MySpace and especially not to Google.
Should all automated processing of 3rd party content be covered by the Section 230 immunity? I don't know, this court thinks not, but the problem isn't as wide-ranging as your reporter seems to believe.