RB manufacturers could certainly design out some of these undisciplined/untrained user errors with technology available today, but you wouldn't like the price of what came out of the project. It is always a balancing act between what users would be willing to pay and technology (available today) we could put into a diving unit if price were not a consideration.
In the specifics of this accident and discussion, it would be very easy and inexpensive to roll-out some potentially life-saving remedies to the issues we discussed:
1. The JJ ADV could be moved from the t-piece in the inhale counterlung, to the t-piece in the exhale counterlung, such that any hypoxic leak is further away from the mouth and upstream of the O2 Sensors.
2. The JJ Controller could default on start-up at 0.7 with no lower than that being made available in any Menu.
I can manage, but I'd be much happier if the ISC APECS Controller in my Meg had only 3 Setpoints: 0.7, 1.0, and 1.2 (less button pushes and less chance of a user error). The Meg has the ADV as standard on the exhale counterlung (safe side!).
I see no use for wet switches. I just do not believe people jump in the water without looking at their display first. If the display is ON and it can only be in life-sustaining mode, easy enough for the user to turn-on the display/electronics and check it is ON.
As to the issues of what users would be willing to pay, easy enough.
There are Fiats and there are Ferraris.
Rather than a standard flat price for all rebreathers, rebreathers with better features and safer could be priced higher than others not as good, and give consumers a choice.
You'd have to give the performance figure of the rebreather to the user for the user to make an informed decision (i.e. WOB...) and choice.
From a moral/ethical standpoint, if a rebreather has a Probability of Failure on Demand of greater than 1 in 10,000, then you'd have to inform the user and obtain his/her informed consent before selling it, and if it is safer than that, you could fetch a higher price.
I do not see money being a constraint in respect to the small, but potentially life-saving improvements in my points 1. and 2. above.