In the recent past I worked at a place that used daemontools extensively. We used a wrapper shell script which would do the restart loop detection, then exec the actual process to run. If it detected X restarts in Y seconds (by echoing the unix timestamp to a restart log and checking it) it would "svc -d $(dirname $0)" (or something like that) and exit.

We also had a monitoring service (nagios) that would check if any services "auto-downed" on any servers and alert us.