I knew of the song's existence but that's the first time I've heard it. Ouch! Some very salient points there but I think Eric's line of "I hope that you die" is his way of using a sledgehammer to crack a walnut.
According to a youtube comment by Candice-Marie Pratt from 5 years ago the story has a happy resolution......
"Lawrence had named Wreckless Eric in a Denim song about pub rock. Eric hates to be described as pub rock and was furious so wrote this rather over the top comeback. However, the story has a happy ending! Shortly after this was released Lawrence (very bravely!) came to a Hitsville House Band gig at Eric's request and the two were introduced. They had a good chat and got on very well so this song is no longer about Lawrence from Felt/Denim!"