I'm curious as to the effect this ruling will have on the JAA PPL
schools in the US. I imagine that most of their customers are foreign
nationals/aliens. Will they be subject to a FAR stipulation in this case.

Also I wonder what realistic effect this can have. A potential
terrorist with hostile intentions will simply be forced to get their
instruction in another country, and there is no shortage of flight
schools crying out for students with the current downturn. That
terrorist can then take their new ticket and enter the US and rent or
purchase an aircraft.

The only people that this inconveniences are the legitimate pilots.