Legally owning a gun is a 2 step process. That is because a firearm is in its own category; like a title of a vehicle. The 2 steps to LEGALLY own a firearm is (1) You pay for it. (2) You fill out the paperwork.
Now, if you buy guns from individuals, and don’t want to do the paperwork, who cares? It’s not illegal. But by filling out the paperwork, there is at least a slim chance that if the gun gets stolen, you’ll get it back; thus a little bit of protection to the buyer. I don’t know for sure, but I’ll bet if you file an insurance claim for an unregistered stolen gun, State Farm who is notorious for denying claims, won’t pay for it. Sorry I didn’t spell that out more clearly earlier.
Legal and ethical are often not the same thing. Me personally, I see no difference morally, that Colby retakes possession of a gun that the buyer that did not legally complete the transaction by having the gun put in his name. However flawed, society needs to have laws in place.
I do not believe inanimate objects contain a curse, bad karma, etc. The police obviously think the gun belongs to Colby. I agree with them. All of the sellers on this forum, when they sell a gun state: From my FFL to yours. I agree with that as well. Having the gun destroyed makes no sense to me either.