To be honest, I can't ever imagine ever getting worked up enough about one photo of my neighbours house in an overwhelmingly positive feature on my town.
She was the one barking the law at me. I politely told her the facts.
I can understand how it would upset someone even if you can't.
Granted, the tone of her email was way off, but even so your reply might be factually correct but it's pretty curt IMO.
You can't imagine why she might be upset but that might just be a limit to your empathic abilities. Other people can understand it, so the issue is, IMO, just because you can do it legally, should you dismiss the distress you cause to others by your actions?
She's legally entitled to take a photo of you looking hideous at 4am as you nip out down the road for a kebab in your slippers, or slyly picking your nose on the bus if she wants to and she can upload it for zillions of people to see and she can even make it so that when you google your name it's one of the first things that people see.
Then when you email her to complain she can send you an equally curt email pointing out her legal rights as a photographer.
I suppose I'm just thinking that just because people are legally entitled to do something does not mean that those things are the right things to or that the feelings of others should be disregarded, well IMO anyway.
The notion of editing/censoring a picture on the grounds of a neighbour not liking the look of it or a (frankly bizarre) suggestion that it might somehow knock a few quid off the selling price of another house is patently ridiculous.
Ridiculous? Really? Maybe, maybe not. We're in a recession and many people are in negative equity and really struggling to sell their homes or risk facing eviction and homelessness. If you photo is one the first page of a google search then of course it might adversely affect the prices of houses in that street.
Even if it doesn't affect it but only causes more sleepless nights for some poor sod who's lost their job or cant pay the mortgage and who thinks it might affect any slim chance they have of selling their home then keeping it on line just seems to me to be a really selfish thing to do. It's not even a great photo.
I wonder if the accusing tone of her initial email has got you to dig your heels in, whereas a more polite email might have been more accommodating?