I'd consider being reimbursed the cost as free. I also said "basically free" in hopes of avoiding this exact semantic but here we are
I'll admit to the word being wrong but how would you describe it then?

As for the not breaking / gear progression causing it not to break, that is a non-issue in my books. If it's not breaking, don't use it there next time. Same thing if it stops working due to gear upgrades. Most things that it was worth using on at 480 it's still worth using on at i500.