I don't think that letter was discussed before here on Pinside, if it was I just missed the discussion entirely (or have forgotten about it, also possible). Because I'm not a WOZ owner and don't have a dog in the fight my interest in the WOZ threads is really not all that high . . . I just read them since I have to moderate them and they contain most of the fighting and trolling here on Pinside.
I was more than slightly surprised to read that letter though. Having an attorney threaten (or insinuate that they can tag) someone with damages (including lost profits) could backfire horrifically . . . that's a great way for a company to get itself dragged into court in jurisdictions that are foreign to them but the home of the recipient of the letter.
Just for example: anyone feel like defending themselves against a $74,999 extortion lawsuit in state district court in Cameron Parish, Louisiana, population 4,000 people? http://en.wikipedia.org/wiki/Cameron_Parish,_Louisiana Gotta be careful where you have lawyers send demand letters and not fire those things off haphazardly.