Oh goodness, no, stick to your policies. It's the buyer's responsibility to read them before they buy, and if they don't then it's their own problem. When you go to some website and make a purchase you have to accept the terms and conditions - that's what the policies are, our terms and conditions. The problem is, though, that there are so many shops on Etsy with different policies - some replace packages, others don't, some have tracking, others don't, and some accept returns, and others don't - that it's hard to keep track of them all, especially if they're a frequent Etsy buyer. Personally, if something goes wrong with a package, I approach the seller asking for a replacement or a refund wherever necessary (so far I've only had to request a replacement for a missing package), but prepare myself for them to say no. I won't leave negative feedback for it, they're trying to run a business afterall.
I think you should count yourself lucky that this person seems so friendly and doesn't intend to leave negative feedback. Still, whether the person is nice or unpleasant also shouldn't affect your decision. Though, admittedly, it might affect mine ^^'