Looks like he caved, to me anyway.
Indeed it does. It may have been a difficult decision for him, however....I am trying to imagine myself in a similar situation....if I had a family, was not wealthy, had no powerful contacts or associations in politics, the media or the law, getting a letter like that would likely make me think pretty hard about things. We all know that even when you're on the right side of the law, a big organization with legions of high-priced lawyers can ruin a person financially just from defending himself.
Thankfully, Michelle Malkin has taken up his cause and so he may be able to breathe easier now that much of the heat will be off of him.