I completely get where you're coming from, and understand your motivations for carrying on your conversation with him, and I understand how terrible an idea it would be to work with him, especially given his poor management skills and complete lack of financing, but I still think ultimately you came off as a bit of a richard.
The whole "reveal" of your lawyer charade and whatnot just gave the impression that you were basically pleasuring your ego over having led him on and being more successful/skilled than him.
I'll assume you weren't going for that, but reading it myself that's how I took it, and I'd definitely have done so if I was the other person in this conversation.