Thanks for all of the responses. It's great to get these reactions and to have your support.
Yes it's a bummer for us 61/91 pilots and I hate it. Having been through 141 training where they hold your hand and have a records department, I don't think we get adequate training on how to do this stuff yourself. They hand you a TCO and an SOP and dust off your gold wings and off you go.
I have a friend in Wichita who is an Inspector, and interestingly enough, he agrees with my stand point and would share my sentiments that I shouldn't have gotten the Letter of Correction. Either way, I have not received a response from the issuing FAA Agent regarding my letter to them in response.
Regarding the submission of the logbooks; It's true I probably didn't have to provide them then and there, but my thinking is why wouldn't I or what reason do I have not to cooperate. I thought to myself that if I didn't produce them then and there, it would cause them to want to come back again, or continue to pursue their inquiry and I was hoping for an in and out, open and shut case because I had no reason to suspect that I was in the wrong.
Again, there's nothing penalizing me here, it's just like getting a warning on your driver's license. No official action but if you get pulled over again, it will show up. I certainly don't want this on there because I don't know if a prospective employer will be able to see this either.
I also think that i didn't get violated because I proved that it was not my intent to violate FAR 61.56, it was merely a misunderstanding. Course ignorance doesn't count for much in legal situations either.
I will post anything else that I hear from the FAA when I hear from them.