This statement is pure hogwash.
And now you also state: Any claim that it has precedential value is very misleading.
Misleading how? Are you suggesting that federal circuit courts do not cite, rely upon, refer to, reason from, or otherwise make precedential use of district court opinions? Or is it that you simply don't know the scope, use, and permutations of precedents?
I did not say Fed. Supp. cases are are not used by other courts. I said they were not binding on other courts. they could be cited favorably, or unfavorably. It isn't a one way street.
As you should know, a decision in one US Circuit is not binding on another Circuit. it may or may not be influential; but it is not binding until the US Supreme court makes a determination on the issue.
If you are so certain of your position regarding the precedential value of a case published in the Fed. Supp., all you have to do is cite a US circuit court opinion backing up your claim. the fact is, you know there is no such case.
US District Court Judge 'A' is bound by a decision of US district Court Judge 'B', even within the same judicial district.