Unbelievables on eBay #1

Received this complaint from a buyer who purchased a 100% Cashmere sweater for $1.99 - great deal, huh? Granted, the size tag in the sweater was missing, but this along with measurements were clearly stated in the item description:

http://r.ebay.com/cWTNcJ

The sweater is not a size medium its barely a small. You were wrong about that. Ebay's guidelines for leaving feedback covers shipping, which states: "How reasonable were the shipping and handling charges?Your charges of $7.00 were way out of line, I'm getting sweaters in the mail were the shipping is only $3.00 to $3.50. So your saying that your handling charges are $4.00. Why in the world would I ever leave you a postive feedback? Let me know. Charlee

My response:
I apologize that you are disappointed in the sweater. It is a 100% Cashmere sweater that you paid $1.99 for - great deal! The unclear size (size tag missing) and measurements are clearly stated in the description. From the measurements, I believed the sweater to be a medium, but the description does state that the size is unknown - measurements are included, however. I have to admit, I always have a beef with buyers who purchase an item knowing well in advance what the handling and shipping charge is. Yes, shipping is a mere $3-$4, but as a single mother of 2 very active children, who works full-time outside of the house as a programmer and maintains Power Seller level status on eBay in my "spare" time, my time is valuable. My time, to retrieve, pack & ship, deliver to post office and stand in line is worth well more than what is left of $4 after eBay and Paypal fees are withdrawn. Again, I apologize that you are disappointed in the shirt. If you'd like to return the shirt, I will gladly issue a $2 refund for the item price :)

Let me know.

I so badly wanted to say "Keep the sweater for a partial refund of $1" ... but, I refrained. Am I right or wrong?