It's still far from optimal though, with that system it is still way too easy to do legal bullying. If you draw out a legal case long enough the coverage of legal expenses for the defendant does matter less and less (still better than not having it, of course!), because the financial pressure can still do permament damage that might not be easily reverted, add to that the intimidation and potential crippling of work/career/brand/profession of the defendant if any of those are part of the legal battle.

Companies can still calculate the costs of losing the case and come to the conclusion that the benefit of the intimidation alone is worth it.