I've only made a few items from leather so something like that bag is definitely better than what I could achieve but in saying that, I wouldn't consider selling something that isn't perfect either. A seller should always put themselves in the customers shoes and ask themselves a hypothetical question of whether they'd be happy if that was an item they'd received; would they be happy to use it? Would they be happy to give it to a family member (other than mother in law, of course)? If the answer is 'yes', it should be fine for sale but I couldn't imagine any true craftsman could look at the item in the original post and be truly happy with it. It looks like the work of a novice or someone very rushed, which would explain the price, but whilst a low price may explain shoddy work, it doesn't excuse it.
I'm glad you got your refund, mate!