If they did this to me being legit, I would just tell them that I was either going to switch to D* or Comcast(if possible). I wonder what they would say then? What can they do to you if you are no longer with E*(they don't have that much power)
You misunderstand their purpose. It's to make sure you comply with whatever rules E* chooses to enforce at the time. Their "power" lies in the fact that you do as they say, or you get cut off. Canceling achieves the same goal, "comply or quit". Once you leave, they don't really care what you do or if your receivers are plugged in because you're someone else's problem. They value your money, but your wallet is easily replaced. (This especially applies to all you "I pay $140/mo" people. E* doesn't count by the hundreds, they count by the MILLIONS.)
Threatening to quit is the oldest and most annoying game people play. It used to carry a lot of weight, but now that we're talking about subs in the millions, most companies don't really care anymore. Quit, go to Direct, find out how much more they suck and then come back. You'll sure have taught E*, or D* when you get around to doing the same to them, or TW when it's their turn, or Comcrap, or..or..
Quit, or don't, but don't threaten to. There are people out there who would just as soon turn you off so they don't have to deal with you anymore. Welcome to Customer Service in 2009.