In any event, I hope you at least complete the edit for yourself as it seems a waste to simply let it die completely. And in a year or two when the heat dies down, like you said, perhaps it could hit the newsgroups or torrents, perhaps even under a different name so as not to directly tie it back to you.
Again, I completely understand your position as it is kind of scary to get your first C&D form letter, but I read it and all I see is that they didn't appreciate your "advertising" the project via myspace. The community here is one thing. While a fantastic and creative community, it is VERY small when all is considered by LFL. But when they see the thing being talked about within a community of 150 million plus, that takes things to a whole other level.
No matter what you decide, those were great trailers and I really hope to see the finished project in some form down the road.
Good luck!