From the grainy picture it's hard to tell, but they didn't look too aweful worn. His story would seem plausible. Still doesn't make sense why there are no cleats available though.
Good deal? If they are not worn it is a great deal. These are so much better than SPDs it's pathetic. Not even in the same universe - pointless comparison.
As for road pedals in general....nothing will beat road pedals on the road. That's kind of the point. If you understand that and accept that because you value the "walkability" that the frogs afford then they present a great choice. Especially at that price.
FWIW- I have scores of road pedals I use for any "real" riding, but my commuter has frogs for strictly walkability. It happens.