I personally wouldn't buy from him and would love to see him shut down.
However, I just want to say that just because a puppy is tiny doesn't mean it has a short life span or garunteed to be unhealthy.
I know alot of people may not agree, but as for the price of a puppy (any puppy) I think the puppy is worth as much as you are willing to pay. I was going to purchase a puppy for $8500 but then the breeder decided to keep him. Also if one of my babies were lost I would pay any amount to get them back.
Please don't flame me for my opion, I'm not saying it's right to charge those prices, but I'm not saying it wrong either.