While I'd agree it is high (esp. considering the converion job) it is not a price completely out of line IME. Maybe a 150-200$ bike here, maybe less. The guy looks like a pretty typical CL refurbisher/seller, and the price is probably the starting point for negotiations.
We have several guys like that here in RVA, and I've made my peace over the years with even the worst of them (Berg's Used Bicycles, if you're curious; he often wraps frames in faux carbon fiber wrapping paper and then calls them "restored"). They perform a service, and they likely wouldn't be listing bikes at those kind of prices if they didn't regularly get at least close to the asked for prices. Their general MO is to get as much as they think they can for a bike.
We just don't have to buy bikes from them. It's that simple. No point getting to worked up over them; I think every CL bikes section probably has a few.
"It's always darkest right before it goes completely black"
Waste your money! Buy my comic book