Well... I'll play devil's advocate here.
I PERSONALLY wouldn't spend 700 on this kit (because I'm into bigger sizes), but I don't see any extra holes, the wrap looks good and pink (they can get brownish over time), there's no rust present, the badges don't look messed with... I can certainly see him getting 700 with the right buyer. The club date tom doesn't bug me if it's from close to the same year (it has a low serial number, and even though I can't zoom in close enough I think the bass and floor are pre-serial) – and plus, the nickel hardware matches the rest of the kit.
I mean, if the tom had the correct lugs, he could probably get closer to a grand. Maybe not though.
Those cymbal arms aren't that uncommon. Might be tough to find a replacement hoop that matches the wrap, tho. But I don't think $700 is completely out-of-whack.
Not like some of the ones in my town, anyway:
http://minneapolis.craigslist.org/dak/msg/4546943053.html (Clear vista kit with repaired AND unrepaired cracks, big extra holes in every drum, sanded to make it a "matte" finish, etc)
http://minneapolis.craigslist.org/ank/msg/4544709495.html (club date stripped of its wrap and badges, missing bottom hoops and tension rods on toms, snare is missing its snares, "all easy fixes")