Whilst agreeing totally that without the 'chute these guys would almost certainly be dead, the extent of the injuries to the occupants confirms that deploying the chute is by no means without risk.
We've concentrated here on the engine failure scenario, but remembering that this airplane was perfectly functional until the 'chute was deployed, I'm thinking about the merits of building additional functionality into the autopilot to recover the aircraft in this kind of situation. I suspect it would be technically straightforward to build in an emergency use only 'autoland' function which would recover the aircraft, climb to MSA, proceed to the nearest ILS & descend on it, squawking 7700 all the way. Whilst the cost/complexity/liability issues associated with certifying this would be horrendous, I'm betting even a crude implementation would statistically have a better outcome than pulling the 'chute.
However, if the pilot had obtained proper training & maintained currency in real-weather IFR flying before getting into this situation, all this would have been prevented.