>> Does the decision encouraging "fee shifting" require that the case go to trial?

Nope. It only requires that the case is "exceptional" -- in the sense that the plaintiff filed an exceptionally crappy lawsuit.

>> Does it require that the fees actually be paid by the defendant? Or might the law school students still be able to receive payment by the troll for their pro bono defense?

I haven't looked into this myself, but my law students tell me that we can get fee shifting even for pro bono work.