Check that thread again. As I understand it "X" and "miss" are not the same. Hopefully the next FAQ will make it clearer.
This does indeed appear to be the case, per RAW. I also agree that I would like this to be clarified in the FAQ, because a number of the answers Adam has supposedly provided in that BGG thread are potentially contradictory depending on how it susses out.
< house rules >
In my personal opinion, the definition of "miss" should be "this attack ends with no effect and all further results on the dice are ignored." I would also say that rolling an X and missing due to range are both "misses" along with any ability that makes an attack "miss."
The Shadow Dragon ability would be better worded something along the lines of "Any attack that targets this figure is treated as having one fewer Surge. If it has no Surges, the attack is a miss."
An attack that fails to deal damage is not a miss, but the rule about needing to deal at least one point of damage to apply a condition must still be observed.
Of course, none of this is what the rules actually say. It's entirely house rules territory.
< /house rules >
Edit: Looks like HTML escaping fails too. Oh well.