If you're buying phones from junkies, you should either expect it to be stolen (in which case, you aren't helping by buying stolen goods and you're just as bad as the thief) or wipe the whole thing.
I thought this at first too, but that video shows he's called someone from the phone. This means he had to have known the phone had a previous owner, making the unknowing purchase unlikely.
You know what's strange? After seeing some of the pics, I hoped he did purchase it unknowingly. It would have felt easier.