<< Your'e wrong. Its 100% the seller's responsibility to get it to the customer in working condition. This doesnt even look like its part time for him, he has a business setup and everything. Would you expect a replacement from buy.com if you bought a DVD player and it arrived smashed? Of course! Whether he wants to bundle it in with his shipping price (9.95) or specify that there is an extra fee (1.10, $2, etc), its his responsibility. >>
Ethically, perhaps. Legally? That could go either way. You could probably convince a small-claims judge on any given day to rule in your favor, but you'd probably lose the ruling with equal frequency. The seller definitely did what was required of him up until he started being rude. I've never been offered insurance in 30 Ebay transactions...the buyer needs to know to request insurance if he so desires it.
The reason that one can expect a replacement from buy.com is because buy.com is a bonded corporation with inventory, insurance of its own, and vendor agreements, not to mention enough financial padding to be able to hand out a certain number of replacements and still stay in business.
At the end of the day, no matter how legitimate this guy's business looks, you're still just dealing with a single private person and you just can't make the same expectations. If you want that kind of security, Ebay just ain't the place to be.