All's well that ends well. I would bet you would not hesitate to return to the shop again and to support the guys business, in the relentless desire to fulfill the bow hunting needs. Customer satisfaction and good customer service will, at least, keep the door of business open.
As for the loss in the exchange, well he ain't lying--24" arrows isn't the common, average length arrow to get rid of very easily.
I would say it was a pretty fair compromise.