I'm in agreement with you tsar.
My feelings are he spoke to a CSR that misunderstood what the OP was saying.
Several times I've spoken either on the phone or through chat with a CSR regarding an issue (not necessarily Amazon) and what I was told would happen, or was adviced to do did sound right. I've turned around and just called the company again, and gotten someone else who told me something that made sense.
Me? If I were told to keep a $900 item, my response would be "Wait, are you sure? I'd like to speak to someone else (the supervisor) to make sure."
In your example with the CD, yeah. It's truly not worth it to Amazon to go through the hasssle of the return of some items, and it's a gesture of goodwill.