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Villains range is so damn wide here it's ridiculous. He probably calls flop and turn with like any 7 or better, any reasonable diamond draw, a shit load of pair + diamond draws, two pairs, endless shit. On the river he'll have plenty of random 5x and Tx but also loads of 2 pair, and one pair. if you bet river, you need hands like 9x 8x to call here for it to be +EV, since the 2 pair combos are gonna be outweighed by the random straights and more rarely flushes. Therefore, you need to make your bet small like you have done given how terrifying this board is even to a fish. I'm not sure what sizing is optimal here without doing a huge huge stove with the widest range ever that would take 6 hours, but I think your sizing looks good. $1.25 seems like too much because as soon as you hit that inflection point where he folds 1 pair, your bet becomes bad.
I'd defo bet flop and turn a little bigger here, slight overbets, are probably god given this guy just wont fold so many hands on this board. You do indeed want to bet big on these board textures, but it's not so much to "discourage draws from calling" it's more that you want to prevent them from calling profitably, and force them to make a mistake if they call, basically you want them to call for then incorrect price you offer as they so often will.
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