what can reasonably be expected of a seller?

I think they were trying to infer that there experience is that some sellers have "not had the time/inclination" to follow up on an insurance claim.
This is of course nonsense as every seller should make it their job to act expeditiously on such matters if they value their reputation and have any wherewithal!

I think the thought process was that if the buyer provides the shipping and pays the shipping company direct then they have control if there is a problem and make their own insurance claim if there is a subsequent issue.

This is of course also open to abuse as the seller will now have no say in the matter if the buyer "claims" it was damaged in transit and may indeed end up with some old substituted junk shipped back to him if the shipping company goes that route.

Cynical yes, has it happened before, most assuredly.

Still don't see how that helps. 

If I am a buyer, and something arrives broke/not working/not as described, I don't want to deal with anything at all...not the shipper, not the buyer, just money returned or withheld and not paid. 

Don't want a "delay" in that either. I don't see any reason why I should have to wait for a refund while the seller sorts out getting paid back from the shipper. That's unethical. 

I am not saying it does help at all, just giving my thoughts as to what I perceive as some other members thought process!

Personally if any buyer asks me to let them pay for shipping and organise it I politely tell them no.

As a seller I have also seen way too many attempted buyer scams to fall prey to immediate claims of instant money back at the very first mention of an issue and need good solid communication and details before I would proceed.

It works both ways.....

I would expect this as a seller.
1. Know the condition of the item you are selling. Describe that in detail to the seller. That includes pictures, functionality, known defects, history repair, etc. Don’t say I did not have time to test item, look at it or otherwise. If you have too much to sell, too much to do, you are just a money maker not concerned in any way about a buyer.
2. Be somewhat knowledgeable about the item. A CD player has a drawer, DAC, output connections (rca, optical, balanced, etc) laser and so on. If you cannot answer basic questions about item, you probably should not be selling it. Especially if it is a high-end product and you want substantial cash.
3. Be detailed about how you will pack and ship item. What carriers will you offer? How far will you ship? International? Will you offer to meet halfway to avoid shipping? How well will you package item and do you know how? Many turntables and tube amps will be damaged if the seller just throws item into a box of peanuts. Are you just wanting to ship item, regardless of safety and insure item so that when it shows up in a heap of wires your response will be, “don’t worry just collect insurance money”? No thanks!!
4. Do you offer any returns or refunds and what are the conditions upfront? Do you offer that item will be arrive as it was when shipped or you will offer buyer something if not? Will item be shipped in original box? Double boxed? Once I ordered a subwoofer and it arrived damaged. The seller asked to take detailed picures, sent me a return shipping label and stated he would turn in the claim. He stated he paid to have it professionally packed and he would take it up with them. He apologized to me! That is really above board.
5. Be available and communicative. Many, many deals go south because the seller does not think it is appropriate to be communicating with the buyer. If you are too busy to answer emails in a week, a phone call that goes direct to voicemail or just unanswered I don’t think you will make a good seller.
6. State what you think is the buyers responsibilities. They have a role to play in the transaction that is crucial. If you think the buyer should have 3 days to inspect, install, operate and test item before a return, state that upfront.
7.  Above all else, be honest and fair. I cannot, as a buyer, expect a perfect item, perfect shipping and perfect transaction every time. If something goes wrong in the deal be fair, be honest. Try to save the deal if possible by bending a little.

Very good points 2psyop!

If an item is truly untested for whatever possibly genuine reason then it should be priced accordingly, not within a couple of cents of guaranteed top flight item.