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While discussing our outrage with this decision, it is interesting to notice that some reliably conservative mebers of the court (Kozinski, Trott, Rymer) voted against rehearing en banc.
The reason why they (and possibly some other judges) did that is because they realized that the case ends at the SCOTUS anyway, and refusing to rehear this case en banc actually speeds up the process.
We should remember that SCOTUS has much broader authority and could use this case to review legal interpretation of the Ist Ammendment.
We may very well be better off with the 9th Circuit deciding not to mess up with this case any longer.