convert image1.png ( -clone 0 -gamma 0.4 ) ( -clone 0 -gamma 3 ) ( -clone -colorspace gray -blur 0x5 ) ( -delete 0 -combine minus -composite ) ( -clone 2 -gamma 05 ) ( -composite -gamma 2.2 PNG:x1.png)
There is no such thing as -combine minus. Do you mean -compose minus ... -composite. If so -composite only works on two images at a time. You might want to do them by pairs or use something like -flatten.
see
http://www.imagemagick.org/Usage/compose/#compose
http://www.imagemagick.org/Usage/layers/
For your problem of adjusting the midtones, shadows and highlights, there are numerous ways to separate midtones, hightlights and shadows. You can try my bash unix scripts, balance, colorbalance, graytoning, duotonemap, duotonemap, tonemap1, tonemap2, tonemap3, tonemap4, see link below, if you are on Windows with Cygwin. Otherwise, you can look at the code (or explanation at the bottom of the examples pages) to see what I am doing and convert that to windows syntax. See
http://www.imagemagick.org/Usage/windows/
The most used concept and similar to your paper is to create binary masks at threshold values that will separate midtones, shadows and hightlights. (By default, I used the mean +- standard deviation as the threshold points, but they can be manually overridden). Then blur the masks to create tapers that overlap. Then process the images once for each region with different brightness-contrast-saturation values. You can use -brightness-contrast and modulate 100,Sat,100 to adjust the saturation. Then use the masks to composite the regions together. In most of my scripts, I just -level (or +level) to adjust the brightness/contrast. But in my duotonemap, I used -gamma.
Alternately, you can convert from RGB to HSL (or HSB), then adjust the brightness and contrast of the L (or b) channel separate from the S channel for each separate region again using masks to combine and then convert back to RGB. Here again I just used -level.
My script, balance, I used a simpler concept (no masks) of just a two part linear transform. The endpoints of the lines are used to specify the values for the transforms of the shadows, midtones and hightlights.
I have used variations of these concepts in my scripts mentioned above.