Update
This was the email I received around 6am Thursday morning entitled "Fair offer?"
If someone outside gym sees u and brings it up to me then I tell you and you can decide at that time to stop or we part ways.?
I told her I can live with that (and the "brings it up to me" is to be understood that they do so negatively) and that i'd see her tonight when I came into work.
Now, some of the positive remarks I had received here may be rescinded now that I have returned to that job but allow me to explain.
First, I didn't hold any animosity towards her, she just over-reacted to a non-issue and she made it quite clear that she wanted me to stay. She wasn't using her stipulation as an end around to avoid firing me. I believe that when she realized that no problem currently exists and that this is a firm belief i have and not a passing fancy she weighed whether losing me was worth something that might not be an issue at all. I don't believe she was bluffing though. I truly believe that she gave it some serious consideration and realized that she may be tilting at windmills. So she might not start packing heat and joining the GOA, but this act of acceptance seems to be, at the very least, a step in the right direction.
Secondly, this was the resolution to this issue that I would have preferred to happen from the outset. I don't need her to embrace MY beliefs, as long as she respects that i have them. And if it doesn't negatively impact her business then this is a non-issue. Of course, if clients actually start leaving the gym because they see me OC'ing out in the city then I do (since I am a business consultant by trade) understand at THAT time she may have to find a resolution by my capitulation or my termination.
All in all I am very happy with the overall outcome of this story. I stood by my principles, I went to bed soundly and with a smile on my face, and I awoke to news that my steadfastness in what I believed would not cost me.
Win, win.