It doesn't mean he's not happy or horribly uncomfortable, unless it's a huge, huge outbreak where he has nasty spots all over his body. When I have dealt with fungus, I don't necessarily see depressed, miserable chins. They just look ugly from the occasional bald spot. Don't feel like you are causing him to feel ill - that's not it at all.
For me, ventilation and humidity are killers. My brother WAY overinsulated our chin barn and it has been a nonstop fight to keep the humidity down. Picture -25 degree weather and I don't even have to run a space heater above 1. The humidity keeps it plenty warm, but it's a double edged sword.
I have not had griseofulvin recommended to me for chins (not knocking it, just have used something else myself), but Angie recommended itraconazole and it worked like a charm. I used it in conjunction with topicals and it got the job done.
I am going to try this sufur that Tara talked about though, as I hate using the Captan. It just doesn't make me feel wonderful using a pesticide on chins (or sucking it into my lungs!). I have used it, and it does work, but if there's a safer alternative, I'm all for it.
ETA: Husbandry after finding fungus is a really big deal, even though a simple dirty cage doesn't necessarily cause the outbreak. Boil and bake your wood supplies. Even better? Boil them then lay them in the hot sun to bake. Do the same with your cage. Wipe it down with bleach water and pop it in the sun for 6 or so hours, while it bakes. Sun kills fungus nicely. Wash your hammocks in hot bleach water, etc. I often wonder, too, if plastic cages foster fungus. You really can't clean plastic as well as metal or glass. Any minute cracks or scratches could easily harbor the fungus, despite your best cleaning efforts.