My personal opinion: Now this thing has gone too far, especially when you've had the courtesy and willingness to negotiate that Google hasn't at all, and actually you've even tried to solve the problem and wasn't enough for them... At this point I were you, I'll show the middle finger to Big G.

And to avoid give also traffic data to these useless egoists, I would give up also Google Analytics, especially when there are good similar tools for free, http://piwik.org/.