What's a stoush?
Very entertaining, & well written too. You were technically wrong to use Fender's name to sell a Peavey, but it seems unlikely that Fender would have worried about it too much if it hadn't been reported by your eloquent & potentially litigious friend. The point is that you were not trying to deceive buyers (apparently) & you told them it was a Peavey, so I don't see the problem. The problem is people who try to pass something off as a Fender when it clearly isn't. And you're right - what else did Peavey base their amp design/looks on?
As for the threats to take you to court, that was all rather sad. Fender wouldn't waste time & money on that, they simply exercise their right to get the ad pulled. Which they did. So you changed the wording. I think the final e.mail to your new friend was a nice touch.
I recently bought a top of the range Breezy with a Fender decal on it, but the seller in Japan made it clear it was a Tokai, & I was pretty sure I knew what it was, so I grabbed it. Smart move by me, it's excellent. If I ever sold it, I realise that I would have to be very careful not to use the "F" word in the ad very much, if at all. You just have to be inventive.
The cleverest way round the problem I saw was a UK seller who recently sold a Tokai Rockinbetter (Rick copy) fitted with Rickenbacker strings! I assumed Rickenbacker would get that pulled - they are much worse than Fender or Gibson - but the seller only mentioned Rickenbacker in connection with the strings, & I believe the ad ran it's full course & the guitar sold.
Mike