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I have a hard time working out if this is a national embarrassment or just the judicial system's way of slowly finding the correct people to compile the code.
Definitely the later: people in power get screened and effectively removed, despite the fact they are biased towards powers of the establishment. Where else does it go that way?
More useful information here: http://torrentfreak.com/biased-pirate-bay-judge-judged-by-mo...

"[...] the appeal court sent out a press release today in which they announce that Ihrfelt has been taken off the case. She has been replaced by three new judges from a separate division of the court."

"[...] one of the replacements, Anders Eka, is connected to the The Stockholm Center for Commercial law, together with movie industry lawyers Monique Wasted and Peter Danowsky who represented the music industry in the Pirate Bay trial."

What is going on here? I'm really surprised that after two such issues they are not checking each and every judge and his family just to prove they're not setting up the trial... This just makes the Pirate Party stronger every day. How many positions will they get if this circus continues? 2? 3?

Yeah, this is getting just plain ridiculous. It's gotten to the point where I wonder if the defense didn't actually want to lose the case just to point out how thoroughly the justice system has been infiltrated by big media interests.
I do suspect that; the defense seemed too competent to not know that the original judge had a conflict of interest. They let it ride knowing it gave them a literal get out of jail free card in the case of being found guilty.
Beyond that, it also plays into the defense's stated goal of portraying the trial as a ridiculous circus.
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I would estimate the probability that the defense knew about the bias before the trial as >90%. That was why they called it a spectrial. It was conducted only for the sake of spectacle as it was not legally binding. Definitely one of the more deeply funny tricks TPB has ever pulled.
And how do we know that the person who removed the judge is not biased?
It's biased judges all the way down.
The judge that was hired to determine if the previous judges should be sacked wish it to be known that they have just been sacked.

The Pirate Bay Trial has been completed in an entirely different style at great expense and at the last minute.

It's nice to know that someone's watching the watchmen watching the watchmen, at least in some countries. By the way, when the first judge's ties to copyright industry broke in the news I was just howling. This is a great show.