Based on how this came down, I believe this dealer thought he was gonna pull a fast one on you. Get the TT and your insurance check for $2500. Didn't happen. Won't stop him from trying again tho.
If I were in your shoes, I would not even compromise no matter what he "offers". This was a game right from the first minute - he thought he 'saw you coming', but didn't realize you were walking in your own shoes and not his.
I'd not even respond to any communications in the future. His attorney will always try to twist anything you say/write about this. Done deal.