NEM is overall deflation. Anytime someone lose their private keys, there is less XEM to circulate and everyone else becomes richer.
That's said a great deal about Bitcoin as well but unless everything's circulating all of the time it's a bit of a reach.
Either way I'd prefer to be a little poorer so the unfortunate fella can have his private keys back.
That "fella" had at least 3 million XEM. What you suggest is no different than saying bail out for bankers, rich and elites. Good riddance to him. We should be focusing more on the ordinary man, not the new bankers of crypto.
NEM is about creating an egalitarian future for all people.