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If the dismissal holds (I suspect it will be appealed), then it may count as precedent, but only for like cases and only in that particular judicial district. If the dismissal is not appealed, then it only holds sway in that particular court and not the entire district.
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Lower courts in NY (this is essentially a "misdemeanor" court) have little effect as precedent anywhere
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I don't know the particulars of CPL §170.40, so the judge may be correct.
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It's rarely used, and when it is, rarely overturned.
WildthegoodolddaysAlaska ™