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FAWS comments on Harry Potter and the Methods of Rationality discussion thread, part 14, chapter 82 - Less Wrong Discussion
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And there is no problem with that if it's restricted to non-blackmail interactions (except perhaps to the degree it's mistaken by others to also apply to blackmail). Not responding to blackmail as a principled position and not valuing the life of the hostage highly enough for the amount asked for are completely different things.
Otherwise it would have made sense for Voldemort (who wouldn't care about Death Eater families) to keep taking family members hostage and ask for lower and lower amounts until hitting the sum they are valued at. Either that sum would have been low enough to devastate the morale of the Order members (e. g, 100 galleons and Voldemort asks for 101 the next time) or it would be high enough to drain their funds.
A refusal to respond to blackmail needs to be unconditional.
Still, there must be a price low enough that it'd be paid.