"The EFF, of course, described it as a "terrible" decision..."
I'm normally a fan of the EFF, but defending TVEyes in this case is taking the p%ss.
If TVEyes just had the transcripts or just linked to the videos on the fox website (like a search engine)and there was a decision like this then by all means call it terrible. Perhaps if they were showing 30 second clips and including a link to the full video you could also argue for them, but showing the entire clip up to 10 minutes and not linking to the original source, really isnt a defendible action. It's flat out copyright infringement, there is not really a need for the EFF to get involved here...