This is nuts. I'd say this is a con job but I honestly can't be sure. I always have the client's keys, and I've had one situation like this where it played in my favor - payment refused after job well done(IMO), keys refused, I actually had the phone in my hand to dial the police and he buckled. Sometimes calling their bluff is the best way to handle it. A set of transponder keys with a remote is worth a lot more than $200 in most cases.
X2 on conceal carry. My Glock is always with me for situations like this, and I hope I never find myself in your shoes. Mostly I carry because some jobs result in $500+ in cash, and no crackhead at a stoplight is getting lucky on my watch. If he was truly threatening, I would have pushed him to see how far he'd go. Hit me, mofo. I dare you. I'd rather see him leave in cuffs than accept $60 for six hours of work between two people. That's $5 per hour per person. Should have refused payment altogether unless it was the agreed amount in full. By accepting that payment, you effectively haggled yourself down and don't have much of a leg to stand on legally if you choose to pursue it. This is now a "he said, he said" situation in court.
Its a hard lesson learned, but had you talked to dear ol' daddy about the job in depth, perhaps this argument could have occurred before the work had even started.
Sit back, have a beer. Laugh it off at a comedy, or do whatever lifts your spirits. Forget these douchebags, robbing a detailer won't take away the fact that they live in their own filth.