I read small portions of the legal document, and watched the video. Having done so, I don't have a firm opinion either way. That said, in my effort to be a safe pilot, particularly when operating from an uncontrolled aerodrome, or other takeoff/landing area whose local factors are not "controlled" in the hazards sense, I make it my prime goal to understand and assess hazards. I'll overfly as needed to assess the possible hazards. So, I find it terribly discouraging that the pilot, when interviewed, said that he did not see the ferris wheel at all. It's his job one to confirm a suitably safe operating environment, and understand the proximity of encroachments. He admits that he did not do that. The ferris wheel encroached, he "did not notice" it, and failed to assure operations which would prevent a collision. If the ferris wheel, and associated public gathering, encroached on normal aerodrome operations, and safe excursion zones, marking the runway closed from the air would dramatically reduce the risk to the public. I don't see "X"s on the runway in the video. Sure, an average pilot should be able to operate an airplane suited to that runway safely in those dimensions, it's not "tight". But placing a crowd off the end creates a risk that the both the aerodrome operator and pilot should have considered, and mitigated.
On the other hand, I see a legal system which seized the opportunity to make the most out of a sad mistake, making a tempest in a teapot. Yeah, I get that the kids were scared. They probably watch scary movies, and play scary video games too. I doubt, that on their own initiative, they sought monetary compensation for emotional distress. Someone led them down that path. An insurance payout for damage to property was certainly appropriate, as the pilot damaged the ferris wheel. Big dollars for emotional distress? I'm not so sure...
The "negligence" finding was based on an approach that was hot / high.
I interpret the negligence found to be not so much hot / high, but failing to assure safe separation from an obvious hazard. I infer that this was an elective landing, rather than the pilot being compelled to land. If it's elective, take your time, and apply all of your skills to assure it is not only safe, but safe with margins. In all cases of elective operations, it is the pilot's responsibility to assure that the operation can be safe. If you feel that you need "published" dimensions, then stick to documented airports, everything will be by the book, and all hazards marked. If you feel that you can figure things out for yourself, okay, but accept responsibility. I would much rather have heard the pilot say: "I checked out the aerodrome, saw the ferris wheel and crowd, and gave extra thought to maintaining a safe operation with them in mind, but I could just not get the performance out of the plane to make it work.". But, I admit, Sunday morning quarterback on my part....