They absolutely did rule that atheism was Mr Kaufman's religion.
An appellate court, commonly called an appeals court or court of appeals, or appeal court, is any court of law that is empowered to hear an appeal of a trial court or other lower tribunal. In most jurisdictions, the court system is divided into at least three levels: the trial court, which initially hears cases and reviews evidence and testimony to determine the facts of the case; at least one intermediate appellate court; and a
supreme court (or court of last resort) which primarily reviews the decisions of the intermediate courts. A jurisdiction's supreme court is that jurisdiction's highest appellate court. The 7th district court of appeals is
not the supreme court/final arbitrator.
Adjudicator "opinions" of an appellate court do not constitute a final "ruling", appellate courts are bought in on
appeals. Their opinions and rulings can be overturned by a supreme court. Regardless, there are some more contextual exerpts from the transcripts than the ones you cherry-picked, (which gives a tacit okay to 'cherry-pick' counter-arguments).
You seem to conveniently forget that they determined that atheism was the man's religion and in such a statement there remains no uncertainty as to the ruling.
"Atheism is Kaufman’s religion, and the group that he wanted to start was religious in nature even though it expressly rejects a belief in a supreme being." 7th Circuit Court of Appeals, Kaufman v. McCaughtry
"The officials concluded that Kaufman's request was not motivated by “religious” beliefs. Accordingly, rather than evaluating the proposal under the state's relatively more flexible policy for new religious groups, see Wis. Admin. Code § DOC 309.61, they considered it under the procedure for forming a new inmate activity group, see Wis. Admin. Code § DOC 309.365. Applying the latter standard, they denied the request, stating that they were not forming new activity groups at that time."
- See Kaufman v. McCaughtry, 2004 WL 257133, *4 (W.D.Wis. Feb.9, 2004)
"The problem here was that the prison officials did not treat atheism as a “religion,” perhaps in keeping with Kaufman's own insistence that it is the antithesis of religion. But whether atheism is a “religion” for First Amendment purposes is a somewhat different question than whether its adherents believe in a supreme being, or attend regular devotional services, or have a sacred Scripture. The Supreme Court has said that a religion, for purposes of the First Amendment, is distinct from a “way of life,” even if that way of life is inspired by philosophical beliefs or other secular concerns."
- See Wisconsin v. Yoder, 406 U.S. 205, 215-16, 92 S.Ct. 1526, 32 L.Ed.2d 15 (1972).
"We have already indicated that atheism may be considered, in this specialized sense, a religion."
- See Reed v. Great Lakes Cos., 330 F.3d 931, 934 (7th Cir.2003)
"The Supreme Court has recognized atheism as equivalent to a “religion” for purposes of the First Amendment on numerous occasions ... but the Court understands the reference to religion to include what it often calls “nonreligion ... a state cannot “pass laws or impose requirements which aid all religions as against non-believers, and neither can [it] aid those religions based on a belief in the existence of God as against those religions founded on different beliefs.”
- See Id. at 495, 81 S.Ct. 1680
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The key terms which directly apply are extracted as; "... recognized atheism as equivalent to a “religion” for purposes of the First Amendment",
"... atheism may be considered, in this specialized sense, a religion" and "... atheism may be considered, in this specialized sense, a religion."
That "for the purposes of the First Amendment" protections part does not conflate atheism with being a "religion". It treats that
antithesis of religion as "equivalent"
only for First Amendment protection purposes, (again, not to
establish atheism as a "religion" in violation of the Establishment Clause).