(not only due to risk to the pilot, but also those near the smoking hole).
Nail on head. The concept of certain a/c losses not being catastrophic ignores the airworthinesses components dealing with ground crew, areas being overflown etc.
My comment on Class A risks existing on Nimrod was based on (a) my interpretation of, in particular, the BAeS report, and (b) loss of a Nimrod being deemed catastrophic. I hasten to add this is the report in which BAeS recommend urgent mitigation but were seemingly ignored.