Is he a creep? Yes.
Do I believe what he did was that bad? Not really. Enduring watching some ugly bastard jack off is not a traumatic event that makes a person a victim.
When I was about 10 there was a 13 year old kid who lived one house down, across the street. He was very "Alpha" and athletic and, like a lot of young kids, I felt it was sort of an honor when this older boy let me hang around with him.
One day he invited me over to his house to watch TV. Everything was normal initially. But at one point I glanced over at him and he had his dick out, masturbating. I still recall exactly where I was sitting (in a chair to his left) and where he was sitting (on the couch). I can almost still feel the cold chill that ran down my spine and the nausea in the pit of my stomach when I realized what I was looking at.
I said, "What are you doing?" He replied, "I want you to watch me jerk off. You should jerk off, too. It feels really good."
I immediately got up and left. And never looked at that kid the same way again. And I never, ever allowed myself to be in a situation alone with him from that day forward.
Having lived through this (as well as one other, similar situation) I always find it difficult to connect to people, and particularly to adults, who claim it can be hard to verbalize non-consent or behave in a non-consenting manner in cases of potential sexual abuse. I was only ten fucking years old and it wasn't tough to get up and get the hell out of there.