Blech. That's an ugly decision IMO and definitely the exception rather than the rule. I'm not completely shocked though. State laws can be putrid sometimes. Especially ones written in 1902.
For what it is worth, the appeal is still ongoing I believe. Hopefully, the SCOTUS will overturn.
No doubt it's an exception and state specific. It also deals specifically with libel. My example was more general, and it involves privacy issues:
Torts Section 652 D (1977)
One who gives publicity to a matter concerning the private life of another is subject to liability to the other for invasion of his privacy, if the matter publicized is of a kind that (a) would be highly offensive to a reasonable person, and (b) is not of legitimate concern to the public.
And thus, as I understand it, you cannot take out an ad in the NY Times publicizing the private sexual exploits of your nanny.