So if the original non-refundable amount remains non-refundable, then when you use the value toward another ticket, that ticket will be non-refundable as well, no matter what fare class you buy. That's how I'm reading it, anyway.
Seems like that would satisfy the non-refundable restriction on this ticket ----the original routing gets cancelled, the $ amount is transferred to an ETC and used later as non-refundable dollars. Or does he have to book some kind of new flight to somewhere right away (before the original outbound travel date), then get what's left transferred to an ETC? Either way, the dollars to be used are 'non-refundable' to his credit card, which is understandable.

Maybe when he calls back again he'll get a more logical answer, because the first one certainly wasn't correct.