When all the people in the balcony stand up, they are standing up because they respect what Atticus was doing by defending the Negro's. Even though Atticus lost the battle, he "won the war." I feel that it was very brave of him to defend the Negro's and personally i was a little shocked because one of the main plots in this book is racism. Loosing a battle when you know your right is better than winning a battle when you know you are wrong because inside you know the real truth and not only that but you don't have guilt holding against you.
An example of this was my mom and I were arguing one time about a year ago with a huge discussion/argument and it went to far for me because i was trying to prove my point. The next thing that happened was i eventually just gave up because i knew she would sooner or later find out the truth, and that's what happened. "I lost the war but won the battle." She came to me later and apologized as i expected and it was all good from then on.