Ford should absolutely be on the hook for a seized engine due to an internal water pump failure whether it happens at 50,000 miles or 140,000 miles, etc. The only requirements in the maintenance manual are periodic inspections and replacing the coolant at 100,000 miles. Had awd_sr known that his engine was going to seize due to a failed water pump do you really think he would have kept it vs selling it or trading it in? When external water pumps begin to fail or are failing you sometimes hear noises, see coolant on the ground and/or the temperature gauge goes up and that is more than likely coupled with a check engine light coming on, nothing like what happened in awd_sr's case, no warning whatsoever. Now unfortunately he has to make a major decision as to whether throw money at an older vehicle or to take a loss and move on to buy another vehicle, not to mention the inconvenience of not having a car and maybe having to rent one.
With technology today, almost any vehicle made should run to 100,000 miles trouble fee with only normal maintenance being done. This is a poor design that Ford should take ownership of. Let's hope a third letter is sent out soon.