That really sucks, when I took my car in after hitting a dear they tried to charge me $1300 for the replacement fender, bumper, hood, and all the paint blending...but there was nothing wrong with the hood, or the bumper....so i got the price down too $650...
BTW, I think you are handling this very well....the e-mails you are sending are perfect. And I bet after the owner reads that last e-mail about you contacting your lawyers, he might do something about ur dents...