Well, the outcome was excellent in this case. Do these laws do more good than harm? I don't know. They cut down on lawsuits. They also discourage access to the courts if you don't have deep pockets.
Doesn't the judge have some discretion as to whether the case was indeed frivolous, the level of frivolity not being determined by the extent of the loss?
Also, loser-pays should not apply to cases against the government, such as Burwell v. Hobby Lobby.