> the cost of suing you is nowhere near the damages they will be able to prove in court.

The problem is, the one advising them whether to sue or not might not care about that at all, and might personally profit from a lawsuit. So they've got all incentive in the world to persuade their employer that they must pursue this or they will have given up priceless rights forever.

The average mortal cannot afford negative backlash, financially or otherwise, to their living situation.

> There is a long road between "got a C&D" and "am getting sued."

Sometimes!