Technically Judge Judy did not win the case correctly, although the seller is a scam artist. The "photo only" words include the weight description along with other descriptions of the phone like color etc., so this cannot be a motive to say she did not worn the potential buyer.
There should be on e-Bay a set of clear rules describing ones items for sale so these kind of scams could be prosecuted.
There are big credit card companies, private lottery companies etc. that use fine print to take advantage of their customers. However, would Judge Judy dare on an eventual litigation process tell the CEO of a multimillion financial corporation that he/she should not have children, refer in bad words to the spouse who is not even present, ask about taxes which have nothing to do with a particular case, and other attacks to the person and not to the wrong doing. Nope, she would not dare. She would be sued for attacks to the person, involving into the citizen's private life etc. She would pay moral damage, financial compensations and damage her career.
To me the seller is a clear scam which needs to be approached by the existing law. On the other hand, the judge is talking way to much off her competence, playing Dr. Laura when she should merely interpret the law. Nice spectacle. In life, I would keep away from both of them.