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This seems like a huge win for Niemann. I remember Legal Eagle's video on it and he made it seem like Niemann didn't have much of a case for defamation. Him getting a settlement of having his critics withdraw their accusations of cheating, getting his account reinstated on chess.com and being able to play in future over-the-board tournaments is just about the best settlement he could have hoped for.
He didnt have much for the case of defamation, which is why he lost that case against Magnus. It is however fair that Magnus has no proof for him cheating in OTB matches, and keeping that up without proper evidence could end up in a successfull defamation lawsuit.
This doesnt necessarily change anything for OTB tournaments, which are regulated by FIDE, who had the report on their investigation postponed until October (I believe).
I agree it is wild his chess.com account was reinstated after their report in which they claimed to have proof for iirc hundreds of times cheating in online matches!
They merely stated his play was, across many games, indistinguishable from a cheater, they didn't have actual hard proof that he was cheating.
If they had actual proof they wouldn't have needed to settle
In chess, doesn't that mean he was playing well?
It's a bit more nuanced than that. Chess engines exist, and computers have the ability to always make the most correct move given the current board state 100% of the time, even when viable alternatives exist. That's how they tend to catch cheaters. If you're out of book moves and making engine optimal moves every turn, there's a strong suspicion that you are using a computer to cheat. Even Grandmasters play sub-optimal moves, so when novices come out swinging with near-100% accuracy on their scorecard, it raises a lot of alarm bells.