I got the same thing John. I guess it's "My way or the highway". They also added another one of my song's to their "accepted" list that was previously turned down. Bait maybe?

I've decided not to play games with these people as much as I would like to hear my music in a movie or on TV.

I don't know if this relates to music libraries, and I guess that they can put anything they want to into a contract, as long as a composer signs it, but I've been reading up on the "Songwriter Equity Act" (H.R.479) on the ASCAP website.
http://www.ascap.com/playback/2014/02/action/songwriter-equity-act.aspx

Yes, you still have an option, but the option is to allow your music to be "royalty free" or not, and they almost guarantee that if you don't go the "royalty free" option, your music will not be placed and eventually dropped.