It seems to me that the real precedent will be set by Google in how they handle this. Just say no and send them on, as the lawyer suggested. If you've got negative info appearing on Google, are you going to risk further attention through a court case? No way. You'll drop it or, oh, I don't know, maybe go after the website who posted it?
Z-Wave, the wireless mesh protocol behind most of these systems, is an open protocol. That means you can build yourself an a la carte system. Not just for security, either, but total home automation. You can even buy Z-Wave USB dongles that work with Linux. Of course you'll need software as well. Or you can pick up an embedded device such as Vera Lite. If you're okay with a small monthly fee, Nexia (formerly Schlage LiNK) is Z-Wave based.
One time John Travolta asked me to fix his computer. So I went over his mansion and he put a gun to my head while this hot blonde chick gave me a BJ. He told me I had 30 seconds to fix it and I did. Then I got a job as Wolverine in the X-Men movie.