Hi Steve,
Of course how you handle your business is up to you, but since you posted his letter I'll assume you're looking for some feedback. Here's mine.
The letter sounds like he's sucking up to you because he's scared. He is scared and he should be, and too bad for that theif. Don't let him or anyone else off the hook. He said himself that he saw nothing wrong with stealing porn. A threatening letter to him is fine but it needs to be followed through. Make him pay.
Next, $1900 is too low. Charge him $1900 for the FINE and the FINE ONLY. Think about it. He's getting away pretty easy, and he's already got lots of your content anyway. Throwing in a lifetime membership is absurd.
Just my 2 cents...
Besides that, WELL DONE SIR...
And now, more butt shaking.
