Nobody here gets it. Wrong venue to post this. Web business owners would certainly back me. I have snapped plenty of domains for development purposes but never have gone after a domain specifically because there was a live site there with intention to hold it ransom.
Joel
Well I have numerous websites and am a web business owner and I don't back your thinking. I'd be willing to bet that others who disagreed with you in this thread also are web business owners - there are hundreds of business owners here. The person who registered the domain name went after a dead discarded site ... not a live one. In fact there was no site at all if you really think about it - just a domain name. His web business could be registering discarded domains and parking the domains for pay per click traffic - very legit. You contacted him and not vice versa so I doubt he sent you a ransom letter.
Personally I've never really gotten into that backlink domain registration thinking and just register domains I like and feel they have value for resale or development. However many people here build a profitable web business with domains with backlinks/traffic. When I think about it - I did register a domain name that was a former law enforcement site (with backlinks) and built a simple one page site that sold law enforcement supplies (affiliate commissions) - anything wrong with that? Nope.
Joel - I own WeightlossProgram.com and if I accidentally let it expire and you registered it - would you sell it back to me for $200 or would you hold it for ransom? Redevelop it and say the hell with me? Resell it for thousand$ more to someone else? (personally I would redevelop and/or resell it). I believe UCLA owned weightlossprogram.com at one time - they suffered from poor domain business management and let it expire. Now .... who deserves the domain name - them or me? (note - if the name was UCLAweightloss.com I would feel differently)
PS - Every domainer here is a web business owner even if there sites go undeveloped (parked names or not). They are virtual real estate investors - a web business.