Commission disaster - what do I do?

Oh man! I'd like to post this here and get your opinions, not just on the painting, but on the fix I got myself into. Can some of the pros please give some insight?

I got a small commission - paint a beach, and stick 2 people on it. We did the drawings, she approved them, and I told her based on all the stuff she wanted in the painting, and the size of the people, and the pictures I had of the people, all I would be able to get was a general likeness. She approved initial drawings and the layout on the canvas. I told her general likeness meant you'd know it was a dark haired woman and a dark haired man of their general proportions kind of thing.

We went over that a bunch of times, and I sent her the work in progress too which I don't normally. Now she's very disappointed, doesn't want it, and I'm disappointed too.

This was a composite composition from a bunch of sources. Can I get some feedback on the likeness, painting in general, and overall situation? What would you do?

Thanks everybody. Here are the people: