I was actually surprised at the lack of protection in the toaster. Microwaves always have 1 or 2 thermal cutoffs plus current protection but this had nothing. Just the mains running straight to the element through a bi-metal switch. So anything I do is an improvement over the safety I experience while making toast.
There are different categories of safety protection according to the risk and consequences of a failure.
I think here it comes down to how long the appliance is likely to be left on unattended. It's unlikely you'll leave the toaster switched on while you're out of the room for a long length of time and there's normally a timer with a maximum delay of 10 minutes or so. In other words you'll probably smell burning plastic before the toaster catches fire and if it does you'll be there to turn off the power and throw a fire blanket over it. On the other hand a microwave could be left on for more than an hour unattended, which is long enough to burn the house down.
On one occasion while I was doing the software it locked up while the element was on (stack overflow). Of course I have since enabled the watchdog but that is a very legitimate concern, especially when it is complicated. My opinion is that a single engineer simply does not have the resources to make a commercial product like this, you need multiple people to review it and you need adequate resources for product testing and refinement.
Yes software can never be relied on its own for safety critical applications. There need to be other layers of protection, unless the design consists of three MCUs running different firmware, monitoring each other to ensure it fails safe. The whole design needs to be peer reviewed by several safety engineers.
You also need to be careful with devices such as switches, relays and semiconductors which often fail dangerously i.e. closed circuit. Often the best option is to buy a specially approved safety relay.
I like your write-up by the way and even though it's obviously potentially dangerous the disclaimer should stop you being sued lol.