Droog, I don't know the answer. Your points are valid, to me at least. I agree with you about "Acts of God", but honestly don't know any legal details on that subject. In the case of blatant negligence in accidents of any type, I have to believe that the ability to be financially responsible when the worst happens is what tends to keep corporations on their toes, so to speak.
My feelings on the issue are not personal, I've never sued anyone. I also do not feel qualified to judge a family going through something like this.

I do believe strongly that our legal system is in some ways, like aviation. You only hear about the bad events.

What's the answer? No clue. I tend to believe that our system, while flawed, is pretty good compared to what citizens of some other countries have. I also believe that in the long run, maybe too much freedom is better than too little.