How are you so sure he would have been reimbursed? If the package is shown as delivered - even if it was very late - the insurance wouldn't pay out unless it was a guaranteed delivery time. I know myself that putting claims through for items lost in the post takes an age so it's doubtful that it would have been resolved by the time it was eventually delivered to you. That being the case, Jens is indeed out of pocket and you have ended up with a device you didn't pay for.
Personally I would have made sure a small vendor such as those serving as small a community as ours wasn't out of pocket and paid them afterwards if that was the case, but hey, each to their own.
Also, I still find it strange that you don't want to return something that clearly doesn't work for you. If I was given something as a gift that didn't work, I'd rather return it and exchange it for something that did actually work rather than waste the gift sentiment. I'm sure whoever gifted it to you would be of the same mind - they surely aren't happy that an expensive bit of kit they gave you is sitting in a box, slowly decaying. And if they're not that close that they don't know you're not using it, they probably won't notice if you swap it for something else either.