I think "we never quote with paint as there are just too many options for the customer" was intended to mean $paint isn't lumped together with $labor into a single $paint+$labor number. "we never quote with paint" was poorly phrased; "paint is itemized separately as there are just too many options for the customer" would have been clearer.

Would it have killed this contractor to state "Labor only, paint extra" somewhere on the ad?

Now if I only had a 1600 ft^2 home that's 100 stories high... or is this loophole taken care of in the fine print as well? (Actually it would be suicidal to buy this coupon then because the job will bankrupt the contractor and I'd have to deal with a mess of my own making.)