This has nothing to do with that email. Apple would never threaten a user like this
It did say you woulnt be able to use ecrtain apps until you conformed
and it would have no way to prevent the app running on your machine. I would guess that you have fallen victim to a phishing attempt. You need to change all your passwords immediately.
Given that you 'forgot' to back up, it's hard to see a good outcome from this.
This the email I got, I clicked the link but it said not recognised or website no longer valid. I went through the official apple website to change my password. Hopefully I've not gotten anything from this. I went on this after my photos went though, so at least I know its not that.
<Image Edited By Host>
Nothing to do with iPhoto but you need to be MUCH more careful
NEVER click on a link in an email liek the one you got - only go to the web site using yoru normal access - the message you got was a phishing attempt and it may have been successful
And NEVER post your email address on a purlic forum like you just did - that is only asking for more problems - I've requested tha tthe hosts remove it
To be as safe as possible you need to change ALL of yoruo passwords for all sites and services - no telling what you gave away and what is going on with your information