Well, I can certainly understand your irritation, but I can't agree about Fantastico at all. I quote myself above: "BTW, I have probably done 35 - 40 Fantastico installs since February, and have YET to experience a "corrupted" one...."
I'm sorry, but it sounds like an inept host/support staff to me. I have YEARS of webhosting experience, and the sort of thing you're posting is NOT how things are normally handled.
However, concentrating on your other blogs and their content is a viable option. Still, you shouldn't allow a probable host problem to short-circuit your site-in-process.
I would think you should find a new host just for the one site your current host seems to be having such an inordinate amount of trouble with, and start clean. There are hosts around (like one of my current ones) who charge $5.99 a month billed monthly through cc or paypal subscription, with no setup fee, 200meg, 5 dbs, etc. If it's NOT to your liking or if they have the same problems as your current host, you can cancel before the second month. $6 isn't much to find out where the problem may actually lie.