I can kind of understand where Fox is coming from, but it sucks that the movie may not come out for a long time. People who have seen advance screenings of it have said it is awesome, and why should people be deprived of an awesome movie? Especially when there are so many bad ones out there.
I don't think this will affect the March 6th release date. One of the points of contention of the suit is that Fox wants to put out the 1960's Batman TV series on DVD since they own the rights to the tv series but they couldn't because Warner Brothers/DC owns Batman. Thus part of the reason for this lawsuit was to get some leverage to be able to release the season sets. On top of that they want a 10 percent cut of the box office for Watchmen since they technically licensed it first. I'd imagine Warner Brothers/DC will quickly give them the rights to release the 60's Batman show and the 10 percent box office take and this will all go away.
I think Fox should stop whining and WB should pay something for the rights. Beyond that, I don't care as long as the movie doesn't get delayed. I've been looking foward to Watchmen for a while now.