It's important to remember that the current situaiton is no different than any other celebrity with endorsements. The companies that they work for dump them instantly as soon as there is a public relations problem. For example, Kirby Puckett of baseball fame lost all of his endorsements after a domestic violence problem. That didn't change anything about his outstanding performance as an athlete. Likewise with Pete Rose, also of baseball fame, who arguably deserves to be in the baseball hall of fame, but is being blocked because of his history with gambling. Again, it doesn't reflect badly on his athleticism or outstanding record as a top player.
Not to seem like I'm intent on defending Armstrong, but when you have an organization that has one mission and one mission only, and that mimssion is to prosecute doping bicyclists, you can bet your life they will do whatever it takes to justify that paycheck. Who is next, Greg Lamonde? It wouldn't surprise me to learn they are going after him.
As for any references to Armstrongs lawyers, consider that this individual is up against a funded bureaucracy with huge resources and an enormous and focused budget. They can walk all over anybody they want to.
I think Armstrong did the right thing. He "stopped the bleeding" by stopping what must have been a very costly legal battle that was getting him nowhere. He lost some endorsements, at least temporarily, and he is probably still in good shape financially. That's a good way to end it, all things considered.