OK, you just went from "he NEEDS to offer them on Craigslist" to asking him to please stop. There's a huge difference. They're his property. You can ASK him to offer them on Craigslist, or ASK him to donate them somewhere, or you can offer him money. But it's not up to you to say "he needs" to do anything, or call him an ass hat(e), or try to dump anything on "you guys" (like me) for "accepting this kind of behavior".
It's not up to me to accept it or not accept it. It not like he's a child molester, it's his property and he's within his legal rights. I don't enjoy the pics/vids myself, and I agree it's a waste. But yeah, SUGGEST to him that he try to preserve them, give him some alternatives, point those people you know who would have paid for them to his site.
Or, you know, just don't buy stuff from him. I haven't. Pass the word around, but it can be done without making a bigger deal about it than it really is:
"Did you know that there's a guy that sells old arcade parts but he burns up the cabinets when he's done?"
"Oh man that sucks."
"Yeah I'm not gonna buy anything from him."
"Yeah, I wouldn't either!"
So there ya go.