Earlier quoted context omitted.
Totally agree it's a reasonable time. I think that it's a waste of time to argue why it takes time to do your work. You'd only write that letter because you feel bad about charging your client for your time. A better letter if you wanted to write one would be about the benefits you provide and the completeness of your work. I wouldn't even mention the time it takes.
If you're charging T&M money, and the client comes back with "why does it cost that much?", what would you suggest? Assuming burning the bridge isn't an option.
The more explanation you get out there the better, if you're honest (or a good faker) people will be reassured by your explanations - but accept that not all clients are profitable ventures, a customer who can't pay for the time it'll take isn't one you should take on, just try and leave things in an amiable state.