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Messages - tuxellie

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I unintentionally put a small image on my website that was discovered by one of Pixsies scanners.
They sent me threatening emails and wanted to press £500 out of me.
The image was removed immediately and I responded with links to examples of similar images on stock photo sites. Pricing for online use was in the range of £20-70. I offered to pay this amount.
They insist on the price of a "full commercial license".
I did some research on the web and found that in UK copyright law the so called "user principle" is often applied. This means that the court takes into account what the defendant (me in this case) would have done if he or she would have acknowledged that a license for an image needed to be obtained. In my case I would have never purchased a full commercial license, but either picked a cheap stock photo or used an image that is available for free.
So my question is how are my chances to argue with the "user principle" and insist on the prices I suggested ?
I want to settle this, feel reluctant to support this questionable business model by paying up and I do not want legal overkill and court costs.

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