Also its a policy to be turned to a marketing advantage. Imagine 10 sellers of the same kind of product and only one offers a return policy because they stand behind their product... there's a reason for that. You would end up wondering why other vendors don't back up their own product in such a way, it reinforces confidence across the board which then leads on to customers buying multiple products. Can be start of an enjoyable relationship where both parties get an awesome outcome.
Bob seems a fantastic customer focused guy. I err on the side that people wouldn't take advantage of his offerings. Even a refunded person can be a profitable customer due to reassuring other people on the fence of just how good the customer service is, which in turn leads to sales...
Anyway, if bob offers such a service for genuine customers due to the investment required that would be awesome