I could keep the babies if I didn't like the breeder. But it sounds to me like the op likes the breeder at least a little and I tried to post what I would do in the op's situation. If I liked the breeder I would feel obligated by my own upbringing and whatnot to inform the seller. And I would at least offer them a baby or two depending on if I have the room, time and money for raising a clutch til they are big enough to sell, I might even offer up the whole clutch.
Now this REALLY gets to me, why would whether or not you 'like' the seller have anything at all to do with it? Do you have two different sets of moral codes? One for people you like and one for people you don't like?