This thread is several weeks old but let me weigh in as the person whith probably the most experience with City/state .TV
I have owned, and SOLD over 50 city state .TV. If you got a $400 offer take it.
I was pretty much the second or third person to begin buying city/state.tv's, but I was the first person to buy them up in large quanitities. Most folks believed they were worth nothing, so I invested in an undersaturated market. By the time the godaddy $9.99 sale occured I had already owned and sold 25-30 citystate.tv's within 3 months of purchase for $150-225 each. So it was a no brainer to buy up the remaining top 100 markets, so I bought about another 25 at $9.99. I flipped all the $9.99 names for $75- $100 each in less than 5 hours. Im sure I could have held and gotten more like $150-$250 each, but Im not greedy, I felt like 7-10x in 5 hours is just dandy. I had instructed several of my friends to buy these citystate.tv names during the $9.99 sale and they also flipped within a week for about $200 each. I have sold all my citystate.tvs except HonoluluHawaii.TV (hold by choice as it is my home town) and I have moved on to other niches so I dont mind commenting on these names.
IMO you should have sold at $400.