[twiceeaten]

Lawsuits are an issue, I highly agree and only explain silence for repeated contact, not for initial rejection notification. I have experienced everything you said and taken a similar approach in the past hiring within my network.

Regarding the larger issues, I have diffused the legal issue in the past to some degree simply by stating, "Legally, I can't discuss this with your further, however I wish you luck" or less directly, "Thank you for inquiring. As a policy, we don't discuss rejections, however I wish you luck." Many people will simply fold, while the crazy people are going to be crazy no matter what, but at least you tried to address people who are genuinely asking for feedback in a polite way that doesn't forever tarnish you.

I have started going out of my way to spread the word in my network about certain companies who behave poorly in the hiring process, however, even if it did not involve me directly. I will not do business with these companies, use their products and libraries (when possible), and recommend against colleagues joining when they come to me for advice, recommendations, or feedback. I encourage others to actually hold people responsible for sh*t behavior. This of course goes both ways for employers and applicants.