Tjwuk; I think that you did EXACTLY the right thing. Lets take a close look at just what you did. First, you armed yourself immediately. The choice of a staff is great. A man in the woods standing holding onto his walking staff is hardly threatening or confrontational. In my opinion, next to a firearm, the staff is just about the best weapon you could have. It has reach, leverage, and the ability to break a leg or arm easily, (not to mention a head). In a fight, it would be vastly superior to a knife. Secondly, you stood up and moved about -- now they know you are not some little kid. Thirdly, you packed up your gear, but did it slowly so as to not convey fear. (Never let them see you sweat!) Lastly, you left by a route that they would have difficulty following.
All of your responses were common sense based, non-threatening, but directed toward being prepared and ready to defend yourself, and win, if necessary.
Although, its been said that "paranoia has survival value," there is nothing paranoid about any of your actions. They are the actions of any prudent person.