Well, had our day in court. The judge pretty much ripped up the landlord's lease, saying they can't say they will withhold deposits if your household utilities are more than 30 days past due (This was a reason they claimed later on).
He also shook his head in disbelief when they readily admitted that they cleaned the carpets, did not replace them, and moved people in, while saying that they were keeping the deposit to replace the carpets "eventually".
He also ripped into them for not allowing a walk through inspection and that saying "we'll be there over the weekend" isn't a date and time.
So, we will be getting our deposit back, minus the carpet cleaning fees, which while outrageous what they said they paid, still gives about $600 back.
Happy overall with getting something back. We had already written it off as a loss, so anything back is great.