You're in a property dispute with a licensed attorney. 

That said I am considering including the images in my response to them to head off any possibility of dispute in court.

They normally only take cases that are pretty severe and obvious cases of discrimination.So, the odds of any applicant ever actually suing you are slim to none.And if you act in a fair manner, and have reasonable criteria for your tenants and your advertisements aren't overtly racist, you're probably never going to have any claims or lawsuits brought against you.And, even if someone was to get a fair housing lawyer involved, they are probably going to want to mediate a resolution that would be fair.You're always better off to just say a tenant doesn't meet your criteria than let someone in you're not comfortable with, or someone who is trying to bully their way into your unit. 

Of course he may dispute this and you will most likely be suing his insurance for the damages.

It sounds like the biggest dispute is $120.

That is hardest to dispute.

If I lived in a place that had included appliances, and one of them broke and was still broken over a month later with no resolution I would not be happy about it. 

Hopefully, once he realizes you can force a sale and WILL force a sale he will be more willing to negotiate a fair resolution to the situation. 

In the city of Pittsburgh the magistrates tend to favor the tenant when there is a dispute.  

Again, I recommend hiring a landscaper to do this and invoice you so you have a concrete value to deduct and aren't just billing your own time which can be disputed.