Whilst I agree that pax who need more than one seat due to their girth (special documentation for real medical reasons excepted) should be forced to pay for an additional seat, the article does describe that the situation was messily handled by JQ. Of course, it could be a media beat up, but the mention of JQ going around in circles is a bit concerning.
I think that the Canadian court ruling was rather ridiculous; hope it doesn't come to any sort of fruition here.
FWIW I am a fat man - admittedly I'm not 160kg or even near that, but I fit into a Y seat in any of A320, B737 or Dash 8 300. It's a snug fit at best, but it's a fit, and I can normally avoid encroaching into my seat neighbours' spaces.