[step:Establish the bijection from conjugacy classes to $[-1, 1]$ via $\frac{1}{2}\operatorname{tr}$]
We prove (6): the map $A \mapsto \frac{1}{2}\operatorname{tr}\, A$ induces a bijection from the set of conjugacy classes of $G$ to $[-1, 1]$.
*Well-definedness.* Trace is a class function: $\operatorname{tr}(gAg^{-1}) = \operatorname{tr}(A)$ by cyclicity of the trace. So the map factors through conjugacy classes.
*Image lies in $[-1, 1]$.* Every $A \in G$ has eigenvalues $\lambda, \lambda^{-1}$ with $\lambda \in S^1$ (Step 3). Writing $\lambda = e^{i\theta}$ for some $\theta \in \mathbb{R}$,
\begin{align*}
\frac{1}{2}\operatorname{tr}\, A = \frac{1}{2}(\lambda + \lambda^{-1}) = \frac{1}{2}(e^{i\theta} + e^{-i\theta}) = \cos\theta \in [-1, 1].
\end{align*}
*Surjectivity.* For $r \in [-1, 1]$, choose $\theta \in \mathbb{R}$ with $\cos\theta = r$ (such $\theta$ exists: e.g., $\theta = \arccos r \in [0, \pi]$). Then $t_\theta = \mathrm{diag}(e^{i\theta}, e^{-i\theta}) \in T \subseteq G$ has $\frac{1}{2}\operatorname{tr}\, t_\theta = \cos\theta = r$.
*Injectivity.* Suppose $A, B \in G$ have $\operatorname{tr}\, A = \operatorname{tr}\, B$. We show $A$ and $B$ are conjugate.
[claim:Two elements $A, B \in G$ are conjugate iff they have the same characteristic polynomial]
[proof]
*($\Rightarrow$)* Conjugate matrices have equal characteristic polynomials (a standard linear-algebra fact: $\det(xI - hAh^{-1}) = \det(h(xI - A)h^{-1}) = \det(xI - A)$).
*($\Leftarrow$)* Suppose $A$ and $B$ have the same characteristic polynomial. By Step 3, $A$ is conjugate to some $t_A = \mathrm{diag}(\lambda, \lambda^{-1}) \in T$ and $B$ is conjugate to some $t_B = \mathrm{diag}(\mu, \mu^{-1}) \in T$. The eigenvalues of $A$ are the roots of its characteristic polynomial, equal to those of $B$; so $\{\lambda, \lambda^{-1}\} = \{\mu, \mu^{-1}\}$ as multi-sets. Either $\mu = \lambda$ (so $t_A = t_B$, hence $A$ and $B$ are conjugate to a common element, hence to each other) or $\mu = \lambda^{-1}$ (so $t_B = t_A^{-1}$, but by Step 1 (part 1), $t_A$ and $t_A^{-1}$ are conjugate via $s$, so $A$ and $B$ are again conjugate).
[/proof]
[/claim]
The characteristic polynomial of $A \in G$ is
\begin{align*}
\det(xI - A) = x^2 - (\operatorname{tr}\, A) x + \det A = x^2 - (\operatorname{tr}\, A) x + 1.
\end{align*}
So the characteristic polynomial is determined by $\operatorname{tr}\, A$. If $\operatorname{tr}\, A = \operatorname{tr}\, B$, the characteristic polynomials agree, so by the claim, $A$ and $B$ are conjugate.
This completes injectivity.
*Conclusion.* The map $A \mapsto \frac{1}{2}\operatorname{tr}\, A$ descends to a well-defined map from conjugacy classes to $[-1, 1]$ that is surjective (by the parameterisation $\lambda = e^{i\theta}$) and injective (by the claim). It is therefore a bijection.[/step]