Certainly no reason to walk away!
If the portapotty is a pumpable model, no reason why you shouldn't keep it. If it's not, you can replace it with one that is for about $125--or with whatever you want for whatever you want to spend. Steve is wrong that a portapotty can only be emptied one way...the tank in the pumpable models are no different from any other holding tanks--they're just part of a self-contained unit--and are pumped out like any holding tank. And if you can install a v-valve and macerator or manual pump in a holding tankpumpout line to allow dumping at sea beyond the "3 mile limit," there's certainly no reason why it can't be done in the pumpout line from a pumpable portapotty. As for odor, it's a holding tank...it has the same odor control issues--and cures--that exist in all holding tanks. At least you don't also have to deal with odor caused by stagnant seawater trapped in the head intake--a common problem for owners of both manual and electric marine toilets. So the toilet shouldn't have anything to do with whether you buy the boat--although the price of replacing whatever is there with what you want can certainly become a bargaining chip. But there could be plenty of other "deal breaking"--or at least costly--problems...so make any offer "subject to survey" and hire the best surveyor you can find. You'll have to get at least a "condition and value" survey--which costs about half as much as full pre-pruchase survey--to insure or finance the boat anyway...and rarely does a complete pre-purchase survey fail to turn up enough problems--even minor ones--that seller either has to correct, or come off the price enough to cover the cost of correcting 'em, to cover the cost of the survey.