We already know the court proceedings were "one-sided" so it's safe to assume no one showed up to defend themselves. For the sake of argument, let's assume the seized domains were actually selling copied goods. Whether one considers copied goods to be good or bad is irrelevant; the most we can say is there are laws forbidding the sale of copied goods. Given such laws, the "defendants" are best off hiding rather than coming forward to defend themselves in court and potentially facing further losses.
With this said, why should the likes of Google, Facebook, Twitter and other other for-profit entities bear the costs of a protracted legal battle through the higher courts? Additionally, why should they bear the costs of compliance with the court orders?
It's not that the courts can't work, instead, it's whether or not making the courts work is worth the expense.