I do not think that either of you have properly thought out the implications of what you are suggesting using the chute for engine failure.
I can promise you IMHO I have.
You are suggesting abandoning a flyable aircraft, pulling the chute which makes it unflyable and keeping your fingers crossed that you don't come down onto someone killing them?
Basically yes, Lets say crap happens over a populated area, the chance of hitting a house or car or person is going to do a whole lot more damage at 60 knots in a forward direction than it is at around 17 knots in a downward direction.
Either way the reality of people on ground being injured by SEP is tiny so not that relevant to the debate..
In any event with sufficient altitude I would aim to glide as far as possible away from a populated area.