For the most part I agree with you except when you say that if you did nothing wrong and something happened out of the blue... In fact, anytime we operate one of our models we create the risk. As such we are responsible for the consequences. I know a little about our legal climate and nothing about your country's but here the lawyers work on a commission so lawsuits are rampant and often frivolous. If someone is injured, they will sue. If you didn't follow the rules of the insuring group they go after your assets because the insurer denies coverage because of non-compliance.
I've seen many instances of non-compliance with the AMA regulations and it worries me because of the possible consequences. I don't want to lose my flying privileges because somebody thinks the rules don't apply to them.