Exactly. I think the reason for all this is in the PAST. Some Russians can't get in their head that things have changed, and some Latvians are so hung up on the USSR that they don't notice that they are behaving in a rather dictatorial/insensitive way themselves.

I have had the opportunity to be here for almost 2 weeks and I have noticed that the similarities between the groups are very strong - I thought there'd be bigger differences. Most of the time here in Liepaja I cannot look at a person and guess what language they speak. Both groups are friendly (although more reserved than the other countries I visited - in line with people further North being a bit frostier, as I myself well know.)

Most of the Russian speakers are generally going along with the policy here: They address strangers (me) in Latvian, they speak Latvian in shops. I think they only switch over if they know that the other person prefers Russian.

I would really admire Latvia and Latvian people if they could be 'big' enough to let the past be in the past and help integrate the Russian speakers to reality of living in a smaller, EU country. While supporting their right to have their own mother tongue. If Russian was used more on signs etc, then there'd probably be more tourism from all of the CIS countries. Presumably that would be a good thing. I have met some Latvians who speak such good Russian that I can't hear that they are not native speakers. That is really impressive.

To try to surpress the Russian language or treat the Russian speakers like second class citizens is reminiscent of some nasty old dictatorship from centuries ago - not the way for a modern country to behave. No EU country behaves like that now (although many have in the past, Sweden for example).
Likewise if all the Russian speakers left, then the country would stop functioning. I can't imagine anyone in Latvia wants that.