Great3- I definitely think it's his right to not offer me a discount on the 8H. Legally, all he had to do was give me a refund and all is done. I personally don't like businesses that do that though, so even if it means going for another company that's more expensive, that's really my only recourse at this point. I think buying something from him now would be saying what he did was fine, and I don't believe it was.
Stock control is a pretty basic task for an internet company. There should have been some control that didn't let me order it in the first place, let alone actually charge me and say it was shipping. At that point I consider my end of the transaction complete, and if he backs out of his end there should be some type of reconcilliation. He offered me a bike that didn't fit my needs, and I counteroffered for a bike that did. He didn't accept that, and wouldn't make another offer, not even -$30 on the 8H. I don't like that method of doing business.
If I pay for something with a check, and the check bounces; the company has the right to charge me a fee for not holding up my end of the bargain, even if I give them the cash later. Why is it that the other way around is just "these things happen."