The Court stated that its previous decisions – e.g., the Benson, Flook, and Diehr decisions – are the controlling law. Seems to me The Supreme Court rolled back the law of what is patentable subject matter to the days before the Bilski decision.
Not quite - it also lent weight to "machine or transformation" as one test of patentability. But there is now room for a patent that isn't just an abstract idea (although to my mind all patents are abstract ideas :) ) but fails the machine or transformation test.
So something like Myriad's test is a good example - there is no machine or transformation involved, but it is more than an abstract idea.