This says it all to me.
I can tell you that this letter of intent was one and a half pages long, contained a simple, bulleted list of documents required for due diligence, and explained the structure of the funding and program.
Additionally, there is a very clear line that indicates that they are willing to extend the deadline provided you give a reason.
Finally, this document is not the formal acceptance of anything related to the program.
I would suggest that "demand[ing] it back" using "high pressure sales techniques" is a strong overstatement.
Basically, it sent a message, at least to these guys. I think they read it correctly.
Ours, on the other hand was, "Awesome! Troy called and invited us to the program! We finally get to quit our day jobs and go after this business full time like we have always dreamed about, and TS is facilitating that! Let's go over this LOI, which is simple and straightforward and doesn't legally bind us to do anything other than say we understand we are continuing the process and wont tell anyone publicly about it and gets us one step closer to Chicago and the success of our business!"
Looking through an LOI and getting it back to them was a joy for us, not a burden.
How do you know that until you've had an attorney review it?
What I think happens is that the people sending this are not completely aware of how their role has shifted. They primary see themselves as "startup helpers" while the legal documents makes them look like an investment fund. I'd say they should pick one and stick with it - I don't mind either, but you can't pretend you're investing, and manage paperwork like a naive non profit...at least that tend to rub some people the wrong way.
In fact, if you're not cynical, you may not be ready for the business world.
Is it possible, that maybe what transpired here, wasn't in fact a calculated tactic, designed to screw the applicant?
In this specific case, I can see it going both ways.
So I guess where we perhaps differ, is that I would prefer to be certain of intent. Ideally, before reaching for the pitchforks to publicly shame someone.