Pretty much. Be prepared for them to post them out of spite. Chances are good that they won't bother, but some people will do it anyway

It's the honeypot, no less. Absolutely not worth giving into their demands because what's to stop them from blackmailing you a second time? Or asking for more? Or releasing the photos anyway?

Well done on you for saying no. Just learn from the experience and hopefully you won't fall for the same trick next time