Why should you even have to be burdened to contact your credit card company?
They don't have the product you purchased...refund the money...end of story.
You're right. You shouldn't HAVE to do it. However, the credit card companies like to get their money as well.
Remember, credit cards are different from debit cards. With a debit card, YOU are sending the money directly to the vendor (well, via your bank). With a credit card, VISA (used here by example, it could just as easily be MasterCard, Discover, Amex, etc) is sending the money to the vendor, and then sending you a bill you pay them back.
When you call VISA (well, really whichever bank issues the card, but I'm going to keep using VISA in my example) and say something like "Company X charged me for product Y, then told me they can't send it to me because they don't have it, and I don't want to pay for a purchase that was never completed," you are really saying, "YOU (VISA) paid Company X for a product they never sent me. I don't want t pay you (VISA) back for that, since I never got anything. If you (VISA) want your money back, YOU (VISA) call Company X and deal with it."
The credit card company will usually (from my experience with other disreputable sellers in the past) contact the vendor to investigate the issue, and work it out. From the one experience I had (with a different company, not X10), the credit card company issued me the credit back right away (well, it took a day or two to show up on my online statement), and THEN went to chase after the other company to get their money back.
That's my take on it, at least.