There are some players at those limits that will call just about anything. I wouldn't have folded in that situation.

If I have top pair in a micro game, I don't consider a bet to be a "raise" until they are putting in at least 10 cents, otherwise everyone is calling and playing with crap and the odds are there to stay in and take those pots with just a high pair, everyone else probably has 2nd pair not high card.

That's just my limited experience, but the standard 3x and 4x bets just don't have the same effect in a micro limit game. You need to be making 6x or 7x raises to get peoples' attention.