There are even quite a few people working actively on the standards who don't understand the contradiction, let alone take it seriously. It's quite a problem.
I see that even the use of smileys in my posts don't show up in quotes
Actually the certification standards take consideration of past historical experience in rates.
When new technology comes along like FADECS Then it is reviewed for its likley effect both good and bad and the regulation modified accordingly. Areas of interest in modification are those that are expected to be no better than 10-7 in freedom from risk of catastrophe. Other areas of postulated risk in your fail soft scenarios don't typically show up in the regulated basis. Else the regulatory change process would never get a modification updated in our lifetime.