Thanks everyone, found an excellent middle ground. Cancelled my Bott & Co claim, and my OCMC was just issued (this time Help with Fees went through immediately, without having to send my bank statement) but Bott & Co said they'll happily offer free legal advice on any defence I may receive.

Btw, if I get a Directions Questionnaire, should I consent to the Small Claims Mediation Service? I've read that courts have a favourable view of parties demonstrating willingness to settle, but I know Ryanair's solicitors, Oracle Solicitors, routinely tick "No" to that (not sure about IUNO, who represent easyJet).