It is hard to know where to draw the line, I do agree, and also making things safer can also make them more dangerous, paradoxically! I once heard a driving instructor say that if the government wanted to make people drive more carefully, they should take car seat belts out and replace them with a big sharp spike on the steering wheel boss - people would drive more carefully then!
I work in a health and safety job, and a lot of government guidelines in the UK are very vague, they like to use the phrase that action should be taken 'as far as is reasonably practicable', in other words, common sense should be used in judging risks. Sadly, some people in charge of h&s take it to extremes, restrict harmless things and give the whole safety industry a bad name.
People seem to be caught up in a blame culture nowadays, instead of something being just an accident, it has to be someone elses' fault! And that's partially to blame, as some companies and organisations are so scared of being sued that they take h&s to overkill levels.
Sadly, a lot of people don't have common sense. My job is to test and inspect electrical appliances in commercial premises and for shops to sell, and many times I've seen things that have been badly repaired (before 1994, appliances in the UK were mostly sold without fitted plugs, and I've seen loads of potentially dangerous items where the plug has been fitted badly - loose terminal screws, wires in the wrong terminals, earths not connected etc), as well as dangerous things being in everyday use. Sometimes it's very alarming, but if everything were maintained correctly I'd be out of a job...
I'm glad that you've clearly got the common sense to look after your children sensibly, I agree that educating them is the key, too many parents don't.
As far as the Electrolux case goes (and this applied to several different brands of cleaner, Electrolux are just the best known), whether the accident was due to the design or the owner of the cleaner, the child that died was the victim, and was blameless. Ultimately, it was a very simple part to redesign which neither affected convenience nor use, and didn't make it more expensive, so in this case I personally think the change in regulations did make sense.
Sorry for going off topic, hope you enjoy your new 262, it is a beaut!