Many places have cancelation policies that will charge you if you make late changes or flat out cancel. This is because they want to be able to serve customers who will actually come. They don't want to deny true customers because somone else made a reservation and didn't show up.
I can understand that but on the other side of the coin there are also many companies that factor customer service in and allow for a refund/cancelation period such as 24, 48, ot 72 hours prior to reservation time. There are also other companies, such as Nordstrom that will provide a refund, no questions asked no matter when an item was purchased. So to offer a window of refund is not a big deal. This still allows the willing customer to reserve a spot but should something come up, it still allows them an opportunity to cancel/re-schedule. This is better customer service.
If you think it is lame because you can't cacel because of a sick child. Do you think it would be worse if you had to produce a evidence from a doctor that you child was to sick to attend to get a refund?
I don't follow your logic as this seems completely not relevant to the conversation. When you cancel a hotel reservation to Las Vegas within their refund window, do they ask you for proof of the reason why your're canceling? No. If you cancel, you cancel. If I tell them my child is sick, he's sick. Plain and simple. I've have never dealt with any company that require dme to provide proof of my statement for any reason and I can't see myself dealing with any such ciompany in the future.
Not something I would do but if you are really worried, buy insurance.
...buy insurance? Buy insurance for what? A dessert reservation package? I'd like to see you find a carrier willing to write such a policy as this is just plain silly.