David:

I don't think you should feel bad.  Just wait for the next good deal.  I have missed out on good deals also (we had a major mis-communication about the sale of your Adventurewagen that I drove 8+ hours to see, remember?).  In this case, maybe the guy really didn't know what he was buying at the time he was talking to you, went home, did his research, found out that syncro vanagons are (doubly) expensive to maintain and operate, and that a syncro Westy with 49K miles was worth twice what he paid for it ($8500?).  If he gets his price, then he can buy another "urban assault vehicle" or whatever, and be happy.  On the other hand, he really could have been a snake.....