Fighting a legal battle can cost a fortune. Make Craiglook an app, I would buy it.
The iTunes app store has dozens of Craigslist search utilities offering more functionality than Craigslist which seems to not understand that we now live in a global marketplace. I use Craiglook almost daily. Necessity is the mother of invention and you accomplished something most never will. You identified a problem, determined how to fix it or improve it and actually implemented it. The fact that they consider you a threat is actually a compliment. If you need money to make a new app happen, just ask. Just put a donation link up and let us Craiglook junkies help fund it. Keep record of the contributors and send them a copy of your app when you get it done or something. Include notifications so when somebody lists an item matching your search words or phrases that you receive an alert. I created a macro to do this so I'm often the first to call when an item I want is listed and have made some great buys. This isn't the beginning of the end, just the end of the beginning. I've had a company online for 15 years now and have dealt with it all, but if there is a will there is a way. Create a plan, rally your supporters and make it happen. Put me on your list, I'm ready when you are.