The Supreme Court upheld the ruling of the Connecticut court in the Kelo case, which means that they ruled that the question of what constitutes the legitimate use of eminent domain is a state issue and not a federal one. Isn't that how it's supposed to be?
“Isn’t that how it’s supposed to be?”
That depends on whether or not you believe in the 14th Amendment’s incorporation of the Bill of Rigths as applying against the States.
If, via the 14th Amendment, the Bill of Rights does apply against the States then the Supremes subverted the 5th Amendment of the Constitution and sanctioned governmental theft of private property.
If the Bill of Rights - 5th Amendment - does not apply against the States then the Supremes reached the correct decision regardless of the correctness of their rationale.