"This makes me wonder why/how anyone would sell them to people knowing full well that they could burn down a dwelling. I take it that this phenomenon isn't that common? "
If you have common sense and treat the li-po batteries with respect you probably will not have a problem. Make sure you use a Li-Po specific charger. Do not charge at more than 1C(example, if you have a 2100mah battery, charge at no more than 2.1 amps. 1320mah, charge at no more than 1.3 amps, and so on). Do not exceed the maximum continuous amp draw ratings for the battery.
Assuming you want to take your li-po flying, you need to measure the amp draw to ensure you aren't pulling too much current. The way I do it is to hook up an amp meter between the positive from the battery and the positive to the model. The ground gets connected normally. Run the model up to full throttle with the prop you intend to fly with and see where the amp draw sits after a few seconds. The amps shown in this configuration should be a worst-case scenario. If it is within the limitations of the battery you should be fine. Otherwise you need to explore options for reducing the amount of current, such as changing the propellor, or perhaps reducing the size of the pinon gear on the motor.
Chris