I think I would have done the same thing you did EXCEPT use slightly different phraseology "PSA I'm short final, please hold short". I have had a similar experience when coming in on min fuel (it's a learjet, what do you want??) and being told to follow a Cessna on a 10 mile final for the ILS during VMC. I promptly replied that I would prefer priority or else I will declare minimum fuel. You are always in command of your aircraft, and if you are landing, following the reg's, then you OWN the runway, according to the regs. You may not own the runway on an aircraft you are following in sequence, but you most definitely have priority over "all other aircraft" while in the landing phase. Unless they are lower LOL So many if's and but's and what's haha. I agree with your decision, just maybe the lingo could have had a little less of a veto sound to it! SAFETY was ensured, so I dont have any problem with it.