What you think and the reality of it are two different things. Any intelligent person could see that cybersquatting is not a viable business model. These are not intelligent people you are dealing with. These are the people who think they could go back to 1997 and register google.com and hold them hostage years later for millions. Spend some time browsing on Sedo or Flippa and you'll see how stupid these people are.

My suggestion: don't give in to these people. Keep digging for a good name, or look into one of the new generic tlds.