Federal courts of appeal make rulings that are only binding within their jurisdiction, for instance, remember that stupid pledge of allegiance thing that the 9th circuit said was unconstitutional? That ruling only applied within the 9th's jurisdiction. Same thing here. Unless the case goes before the Supreme Court and the ruling is upheld, it means nothing outside of the District.
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I thought the point of DC was to keep the seat of government geographically apolitical, as it were?
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That was the idea, and it was a good one and it worked for quite a while, until DC became a major city and not just some backwater where congress met and the President lived. As of the last census, there were 582,049 people living in the District, which is a pretty big number to disenfranchise.