Well, in fairness to Yuri, he doesn't make much profit on a $79 camera sale, plus there's shipping both ways to Australia. He's not some huge multi-national corporation, just an individual small seller.
Personally, I can't see the "putting it on a shelf" argument, even though you feel it's valid. It's your obligation to test a camera when you receive it.
When I buy something, especially a used item, I inspect it right away and give it a test. If it's film camera I put a roll of film through it and if it's digital, I take some pix. If it's a lens I put it on a body and take some photos.
I'm sure if you had found a problem as soon as it was delivered or even in the first month, Yuri would have replaced it, but a seller of inexpensive cameras on small margins can't honor repairs on something months later unless he specifically guarantees it for an extended period.
PS: This is what he states on his site:
Return Policy
Items sold at the Fedka.com store are eligible for 10 day inspection period from the date the item is received. If you are not satisfied with the product, ship it back and we will send you a replacement or refund. No returns on "as is" items.