The end result for Yahoo is a rather bleak choice. Yahoo evidently does not want to tread on this slippery slope because at the other end lies the prospect of removing all references to democracy just to please China. So the more likely route is that Yahoo's site will be cluttered with warnings and buttons that everyone must face on the off-chance that they eat croissants for breakfast. Pretty much everything is illegal somewhere. From the court documents it is pretty clear that the judge was not in the least bit troubled by the wider implications of his rulings.
French courts have the job of enforcing French law.
They are not responsible for the welfare of the Web. If enforcing French law in France happens to make life harder for 300 million non-French Net users, then that is not the court's problem. But if national courts are not going to worry about the bigger picture, surely someone else ought to. It might be more reasonable to expect nations to police their own borders, reversing the burden of responsibility adopted in the Paris court. However, that switch in perspective must come from an international body with real power.