Bro, I think you need to chill a bit. As long as this guy is fully transparent about his refund policy, then you can simply choose not to dive with him. No reason to let it get personal.
If I may suggest, what you're missing is that it appears that his business is the only one offering his specific niche of trips. As he said, bc its alot of resources even to operate it. So, to make it work, he's decided on his "buy in" refund policy. And also, he can demand this of customers, bc if they dont like it, they dont really have any other option to dive. Maybe he couldnt have such a policy if there were more competitors around - divers would vote with their fins.
And, as a response to the OP, and I hope Im not misreading your post, I dont think its realistic to expext the dive operator to bear the risk of the Golden Rule. I certainly wouldnt expect it. Although I would expect a full refund if the dive was blown out. But again, as long as the policy is transparent, divers can vote with their fins.