On the potential impact, I share your concern. It seems Epic is trying to protect friendlies by differentiating loses on hardware. Whether that's enough to protect Sony / MS while hurting Apple is questionable of course.
Also - PSA time - before concluding MS or Sony are hypocrites, bear in mind that either Apple and/or Epic may have subpoenaed the companies, who then are required to send a qualified agent to testify. If that is what is going on, then they are not really testifying as experts, and are testifying as representatives of the companies. Obviously, the companies are not going to send someone to say Epic is right, and we should get broken up along with Apple if Epic wins.