said by J E F F:
That assumes reasonably smart parents.
The thing you fail to understand is that the $500 being demanded from the lawyer is irrelevant to the criminal proceedings, not an alternative to it. Points 1 through 5 will occur (or not occur) regardless of whether they pay that money or tell them to sod off and take them to court.
People don't get to chose not to press charges. That's up to the Crown. You can suggest
to the Crown that you don't want criminal charges pursued, but your thoughts on the matter are really of no consequence and if they have sufficient evidence and believe it is of public interest they can go ahead and do it anyway. They can proceed with charges despite your objection, and just the same they can either not proceed with or quickly drop charges even though you want someone thrown in jail.
You do have the option to proceed with private prosecution of the Crown doesn't want to pursue charges, but at that point you're on the hook for all expenses, and there have been occasions (*coughJulianFantinocough*) where private prosecution against an individual had been initiated, only for the Crown to take over the case - which is well within their right - and then drop it shortly thereafter.