I'm not sure of all this talk of the kid 'deserving' to have been cleaned out by the shop keeper. I think that none of us here know him, or his situation.
I'm also uncertain of the notion that the keeping of the watch somehow honors the original owner, father of the son who was cleaned out by the shop keeper. At the very least, to the extent the father is 'looking down' and appreciating that his watch has found a home, there's a good chance that appreciation is mightely outweighed by a dislike for those reveling in his son's misfortunes.
At best, someone's significant gain from another's significant loss should be taken in some quiet humility.