I always give a lot of respect to people and companies who don’t make excuses and just admit their mistakes.
Squidoo needs to treat their content creators well, and I’m sure Seth knows that. I’m guessing the email in question was not thoroughly checked with everyone in the organization. People make mistakes though!
I was personally a bit shocked with the tone of the email when I received it, but I can imagine the Squidoo staff is really fighting against people trying to hoard lenses in a new form of domain squatting.