I feel your frustration. All these answers are correct, but you will not get much out of it in the long run, other than more negative energy spent than it is worth.
Since you have implied that you want this knife to resell anyway, my advice is to call him back, politely thank him for what he has done, pay his fee, and when you receive your knife, bid him a farewell. You don't want that knife now anyway! I don't enjoy ANY knife that doesn't represent the good integrity of the maker. This knife will always make you feel ambivalent at best, and angry at worst.
Write up a good ad and sell it here or on eBay and be done with it. Use this as a 'learning experience'. :barf:
This is not so much caving in, as much as just getting on with it. It's gonna get ugly any other way. Is it worth it?? Your call.
Coop