While I am a dyed-in-the-wool liberal, this decision isn't very surpising, nor is it very threatening. The Court was engaged in balancing the rights of a student versus the interests a school has in supervising students (such as dissuading drug use). No big deal, they've often limited the freedom of speech when balancing it against other legitimate competing interests. I don't see this particular development (though there are others which are more ominous) as being a sign that we're slipping into a totalitarian state.
What I absolutely can't agree with, ArlJim, is your suggestion that this issue was too silly to take up the Court's time. I can think of few things more proper for the Court to ponder than the First Amendment, which, among other things, is the reason that I, and you, can express our respective opinions on this web site. Plus, the fact that this was a 5-4 decision seems to weigh against your belief that this was a silly issue.
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