The main ENCODE paper says:
Operationally, we define a functional element as a discrete genome segment that encodes a defined product (for example, protein or non-coding RNA) or displays a reproducible biochemical signature (for example, protein binding, or a specific chromatin structure).
Nothing in that implies that a piece of DNA has any function useful to the organism.
http://spectrum.ieee.org/tech-talk/at-work/test-and-measurement/re-imagining-our-genes-encode-project-reveals-genome-as-an-information-processing-system/?utm_source=techalert&utm_medium=email&utm_camp
Correct me if I'm wrong, but this is a really big deal, right?