The time to have fought this was before negotiating a settlement, but having done so, they have an obligation to live up to their end of the settlement agreement.
Exactly this. The case against MS, IMO, was stupid, but Microsoft agreed to the settlement. I can't imagine Microsoft would be happy if a big company kept using a 120 day eval of Windows Server for years and said company said "oh, it was just a technical error." Microsoft would have the BSA shut them down.