CMcG – Your persective is the right one. Unless you’re planning to sell your home and become rich rich rich! who cares (within reason) what the value does. As long as you can afford it, so what?
I’ll have to check out the people threatening to sue, though I’m sure Zillow is protected from that.
My guess is their Algorithm now reflects sales in the area below Zestimates. Someone on hear a while back commented that when a house sold for more then theirs the value would go up, but if a house sold for less it wouldn’t. If that changed it would certainly be the dose of reality people have ignored in this housing crash.
