1. Succession applies with equal vigour to movable and immovable property of the deceased. So if the property is ancestral then your wife has succeeded to it along with other coparceners. The SC ruling does not apply to AP as the state of AP had amended the law much before it was done at the national level by the Parliament in 2005.
2. After the lifetime of your wife heirs can file for partition to cull out her share whereas during her lifetime none of her heirs has the right to claim a share therein.