The Supreme Court has lost it?

The Supreme Court ruling today on a case against the city of New London, CT greatly expanded local government's "rights" to seize private property under eminent domain.

Originally the use of eminent domain was restricted only for public use (roads and other public infrastructure) or to get rid blighted property. Today's ruling allow local governments to seize ANY property if they can demonstrate the planned use for the land would generate more tax revenue for the city.

The reaction to the ruling has been a big "wtf". A quick Internet search reveals widespread opposition to the ruling from the American Farm Bureau Federation to small business owners across the country. Several local newspapers have written about local residents' and business owners' concerns about specific projects (New York Nets stadium in Brooklyn, a shopping center in DC targeted for demolition so that another shopping center operator could take it over, etc.).

It seems to me that The Supreme Court just abolished private property rights in the US. I am puzzled as to why.

-TPP