I know as a supplier I might get bashed, but here goes.
The supplier in question may or may not have known that he may or may not receive his goods from the manufacturer. Despite having paid for it upfront and in full.
He may have had his hopes up based on his past (pre March 2009) experiences. The climate has changed drastically in the last month and I don't think any suppliers are taking anything for granted anymore. It is a hard lesson learned.
I won't sympathize with suppliers who took their chances like this, because they put their customers and reputation at risk. But, on the other hand if they refund your money and are straight up about what's really happening, if it's not a back-order situation but a customs or FDA issue, while they might have been too optimistic about their supply chain, they should not run their business on optimism based on past success with supplies.
The reality is that any supplier could be "out of business" in a minute, with the current state of affairs. I think we all have to keep that in mind. Suppliers have and are taking a great risk and are often blindsided and sandbagged by manufacturers, freight and customs and now the FDA.
I believe the intentions are good and if they do the right thing, even at their expense, for customers - that's all we should expect.
I know there have been suppliers that have dodged the issues affecting them and their customers, such as customs and FDA, and have euphemistically stated, backordered or out of stock, after the fact. I don't think it is an intent to deceive, just a naive approach that backfired. If they are truthful, I think that's the best you can hope for, other than getting your product in the timeframe promised.