It is indeed good news. Of course it does not prevent another motion being presented for voting on - but having recalled Parliament from their summer hols (seriously are they still at school?) on this and having it voted out, the PM's impetus has been completely deflated. Early indications are that a lot of Labour MPs didn't show, so that rejection was a clear message from the PM's own party and the LibDems.
Quite honestly, my ghast is flabbered - I was expecting the vote to pass despite everything.
As for Blair - does his sleep matter to anyone?