x10 does block users, IP address and, when comes to it, entire countries.
As Corey stated, when a certain country has many people causing problems, its the only option.
Although, Corey does, per account request, make exceptions.
This company isn't the only one that blocks various countries for various reasons. So to say its nonsense that x10 blocks countries because of abuse, makes me wonder if you argue with Paypal and other larger companies because they block some countries and not others.
x10 is a free hosting company. You are not required to be here, nor are you paying to be a member. If you don't like the way its run, or how Corey has it set up, you are more than welcome to find another hosting service that better suits your needs.