Where are you getting the fillrate figure for the 7050? wikipedia gives it as 850MT/s which isn't incredible seeing as its comparable to a geforce 2 but its just about enough for some gaming. After playing Half life 2 on both a geforce 2 when it first came out and an integrated ati x200 a couple of years ago its certainly possible to enjoy relativly modern (2004?)games on lower settings with this kind of hardware.
Overall I agree with you that it would be the best option to get a new graphics card if at all possible but to make out that no gaming at all is possible seems a little harsh.
As for your comment that he was ripped off i cant see that he even said how much he paid for this pc...







