I do a IP work for a manufacturer, and in all honesty it is not inconceivable that I might try the same thing against a company that was screwing up our pricing (Send a cease & desist where I thought that our chances in litigation were under 50%). If I received a reply like Kurt's, my thinking would go like this:
1) CEO is an attorney- not a problem. They'll talk to counsel anyway.
2) CEO is a litigator- somewhat of a problem, as everyone knows litigators in general are combat-crazed, psychotic vampires (No offense intended Kurt).
but when I see 3) CEO declares that he will not settle, ever, and that if this goes, it's going to be in front of a judge, then all of my alarm bells would start ringing. That. is. trouble. That is bad news independent of 1) and 2), and with all three I'd know that I've just stepped into a declaratory judgment minefield.
Logain's post is technically correct in that Kurt asks for a lot of stuff that they don't have to give him, but he utterly misses the point that those requests are part and parcel of the wonderfully crafted, you-messed-with-the-wrong-guy, message of the letter. If I were Monster's counsel, I'd ignore all of those requests, and concentrate on the fact that I've just alleged infringement on five BS design patents.