This is done in some packs, but this introduces a new risk: now, once a fuse is blown the pack will be asymmetrical and that in turn will put more strain on the remaining cells in that particular block of parallel cells. So likely that is a stay of execution rather than a solution. Another problem is that cells can develop higher internal resistance than their brothers causing them to overheat. In general, pack construction is a very delicate interplay of mechanical stability, thermal stability and electrical properties. Get anything wrong and it translates into risk, and it isn't always obvious that you've done something wrong.

Even the big manufacturers mess up. That's a pretty good sign that this isn't an easy problem.

So I think I'm agreeing with you these large battery packs sound almost too dangerous to be sold as consumer products. Are there any other examples of consumer/household products that can fail so dangerously and that have not been recalled or banned?

There are things such as space heaters, heating pads, kitchen appliances, etc. that have been known to start fires, but at least if you're in the room with them you can probably react and extinguish them if you have water or a fire extinguisher handy.

I don't know anything that comes close to this. Just recently someone gifted one of my children a battery powered toy, I checked it and decided that I couldn't tell the difference between that toy and a purposeful attempt at arson...

The big thing that stands out for me is that the perception of the risks (impact / likelihood) is entirely unlike the real risk. For most other things those are much more in line. And that's why people get caught out.

Nobody thinks twice about leaving their e-bike charging in the kitchen overnight, or to take it into an elevator or in an extreme case even a bedroom (1 room studio, no storage space). Stairwells are another such spot. I charge mine outside under an overhang, and only do so when I know it isn't going to be anywhere near freezing.