Racing is plain dangerous-but safer than the street statistically IMO.
As to PDE/HPDE events, they are a great opportunity to teach and learn driving skills. I agree that proper safety gear is needed even in a street car. Then again the car itself needs to be prepared more carefully than a simple "state inspection" will require. Most students I have come in contact with come to the track with some idea that brakes and tires are critical. Safety gear ranges from the absolutely bare minimum to brand new full competition setups. It is true that much will depend on ones wallet.
As to Helmets-we are moving toward mandatory full-face. Personally, I happen to like my Bell MAG 4, but will retire it at some point. H&N restraints or at least a collar should be part of ones package-at least for the instructors. Why-it sets a positive example when a student sees that the teacher is equipping him/herself properly for the activity.

Attitudes are something that we all see both on street and track. I had the opportunity to instruct 4 different people at Pocono. Two had cars with the potential to go 150, while the other 2 had turboed street cars. I had more concerns with one of the turbos because of his attitude than his ability to follow the line. He was also not as receptive to instruction as his goal was to be signed off. Didn't happen for him. The other turbo driver was asked to reduce the boost and quickly discovered that he could learn more and be smoother. The first 2 cars were driven by people who truly wanted to be better (NSX and kit car). They asked for and got instruction that helped them achieve their goals for the day. Another attitude issue is the question of $$$-covered by others here.

We all mourn the loss of a fellow driver. Skill level and equipment do play a role. Good instructors know how to get a student to a high point that is still relatively safe. I have taken instruction from several people who knew exactly how to get the best out of me. It left a very good feeling and one where I knew that I was not over my head.
Maybe this should also be part of our responsibility and focus.

Just my thoughts.