There is a Squier neck on sale on ebay. I'm not looking to buy, but I was wondering about the frets on this neck...

They look to me to be rather badly damaged. I sent the seller a message, and he said it was 'fret wear', and did not affect playability at all.
I always thought fret wear was just the frets getting thinner and thinner due to bending, vibrato, and so on.
Is the guy talking crap, or is THIS what fret wear actually is?