OK one more place to go and read --- and I mean read this just don't sit and say --- oh no not another site. (Hint - look at section three)
Legal Pitfalls in Taking or Using Photographs of Copyright Material, Trademarks and People
Look here too:
How to Photograph People When Traveling
and here:
Photographing People When Traveling
Treat people with respect and they will usually respond in kind - except for those who prefer to take themselves too important.
Would I take a street image - and put in on the internet - if it was a good picture yes. Just because one individual threatens you is not a reason to give up on a entire class of photographic subjects.
By the way - could you please point to an instance where someone was sued for putting an image on the internet - and the subject won? Just one joe-blow - anyone?
The Elitist - formerly known as PDL