The Watchtower literature was in violation of Russian law. The law seeks to protect the religious rights of all of their citizens. Whether or not the law is good or bad is a matter of debate.
In the beginning of this matter the Watchtower could have made concessions to maintain freedoms such as ceasing to distribute literature in Russia or simply censoring some of the "extremist" statements the Government had issues with. (In Russia you simply cannot go door to door passing out tracts condemning all religions and showing meteors crashing into churches.) The Witnesses could have continued to meet and worship privately without sanction.
The hyprocrisy is that they will fight for their right to print what they want in a word court and turn around and persecute their own members who wish to exercise the very same religious freedom.
I think this case well highlights how integral the literature is in the life of Jehovah's Witnesses. (I would suggest for control and financing.) I know of one student in Australia who is currently working on her master's thesis on this various issue. I'm very eager to read it when she publishes it.