I don't get why he kept hammering on them for the fact that it was delivered to the wrong address. The bigger problem here, and a better basis for a refund, is the fact that they sent the wrong item. If they sent the wrong item to the correct address it should be eligible, right?
Amazon probably has a process for "wrong item at right address", but since this is "wrong item at wrong address", they don't have a process for it. That's why this seller did this; they probably made a mistake once and discovered the loophole, and now they're driving a truck through it.
That would of been easier since the seller must accept returns within 30 days of purchase.
This is also how buyer-side fraud works, say you got the wrong item, and return a block of dry ice of the same weight. By the time the sellers gets it, the box will be empty and you can just blame it on the shipping courier, since it had xx pounds when they weighted it.