no, you're in the right. had he called dmc before buying it they would have told him the upgrade for $30 was for version 1.1 and above, but that 1.0 (or 1.00) required him to send it in and runs around $70....that's what they told me. i too bought one without knowing there was a difference, but just figured that it was a lesson learned--i should have been more thorough in my research. of course rather than get the upgrade done, i just decided to upgrade the whole shebang and get the ground control pro...(i'm not a fan of the original's flat pedals-i like the metal switches, they're what i was used to with my johnson millenium controller)
so yeah, you were honest, its not like you said it was a version 1.2 or whatever when it wasn't. but you may want to see if you can work something out with him, maybe send him a bit back-cover his shipping or something-as a goodwill gesture. or don't. it all depends on how kind of a seller you want to be.