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As in everything in this world, you get what you pay for.
I've heard plenty of whining from webmasters saying TH traffic (and some others) doesn't convert shit. Probably it's as much to do with where you are sending it as the source.
As for the email, no, it's not "nice" but hell TV commercials compare themselves to competition all the time (taste tests, etc.) - the only problem I see is if he outright lies, which you claim he has. Not nice.
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