I had a registrar fail to renew my domain despite being sent the money 60 odd days before the expiry date. The name and site was worth thousands, yet i didnt blame the person who ended up with the name for one second.
wait few months and see if he drops it. If not ask the new owner and try to make a deal. Anyway if you want that domain so much and you have trademarks with it then you can go to court too Anyway as you said you refused to pay $80 for godaddy offer. I don't think its that much valuable.
Most places that do that try to sell the domain. See their price, but be prepared to pay a lot more than normal.
The OP's probably learned it already, folks. But I guess this is a good reminder to all to stay on top of them.