In general, the current outcome as well the previous situation have been quite problematic.
Give in to the demands and you'll open the doors for potential copycats whose lack of intelligence is only rivaled by their complete and utter lack of cojones and the media and a lot of people will probably be angry.
Do not give in and the media will call you irresponsible at best; at worst, you'll wind up with lots of people dead, lawsuits and the media (again).
No matter what the recipient of such a letter does, the instant they receive a threat letter they have already lost; all they can do is minimize the damage or bet on whichever option they're going to pick and then pray it was the right one.
I really can't blame them for picking the option that has the least damage potential, but I still hate to see it when people like the guy writing the threat letters in this case actually get their way; if I were 30 years older, I'd probably ramble about youngsters no longer needing or growing any balls thanks to the internet and hell, I still think that's the case, but anonymous threats have been a problem since long before the internet existed. In the end, this whole situation merely goes to show how low a person we're dealing with here, a person who'd rather sit on a grudge instead of letting it go and terrorize people for god knows what reason, then affecting hundreds of other people in a more than negative way because it's the next best option the guy can take without revealing who he is, because hey, that would require a minimum amount of courage.
No idea why, but the more I think about it, the angrier I get. Outside of capturing a guy who hides behind a screen and anonymous letters, there's no way to deal with this, that's upsetting, to say the least. I don't think it would make a difference if this threat pertained to Touhou; I'm not upset because of what is being targeted, I'm upset because of what is being done and upset because it affects people who can't do a thing about it. I really, really hope for everyone involved that the police manage to track down the guy and that he will receive the punishment he deserves.