You've got the right idea, and quoting statutes and court cases is wonderful. However, I think you are being overly reasonable by offering to pay for -any- paint or carpet. I would remove the lines pertaining to prorated payment for the carpet life, etc. If you accepted a $95 cleaning fee in your contract, then this is all you should pay. If your landlord has $592 of your money as a 'wear and tear' allowance plus a $400 deposit, then you should ask for $1192-$95 or $1097 back. It is unacceptable for him to charge you for normal wear & tear, whether he previously withheld funds for that or not. You should send this as a certified letter, preferably with a required signature from Ms. XXXX for delivery. Your effort to request a verbal compromise is a nice good faith effort, but not really practical as it implies that you are willing to accept less than the full amount owed to you. Go after it, it's your money!
I had a similar situation three years ago. I had a walkthrough when I moved in with one of the employees to verify the condition of the home. When I moved out the owner wanted to keep my deposit because of 'normal wear & tear' issues and I refused. When I pointed out that all of the items he had discovered were present upon my move-in, he told me that the employee that had done the walkthrough no longer worked for him and therefore he couldn't account for anything that had transpired then. I was livid, basically getting into a shouting match and threatening court, which finally made him back down and he gave me the deposit back. Learned a lesson then & there to make sure to take pictures/video in the future when moving in and when leaving.