When someone pays for the app, they try it most of the time immediately. He explores the app, finds issues, and, because he paid for it, will be much more involved, which will provide me with much more accurate feedback.
Also, if something is not working well for him, he writes me, and I benefit from these interactions with the users. A lot of my improvements for my apps are based on "Refund talks" Overall, the upsides outweigh the downsides.
I don't have many refunds, but when I do, it really helps me improve the app. I already had users who asked for a refund, and a few versions later, the app improved based on their feedback, and they repurchased it.
I am sure that some users don't buy without trying, And this is why I am super responsive to refund requests and handle them faster and without "playing games" with this topic.
Hope this makes sense in some way