Facilities and other things on the pad may not like it, though.
They already said that their Horizontal Integration Facility (where the rocket is put together prior to erection) is intact, as are the tanks on site. But the strongback looks mangled and may well be destroyed. It's also right beside the rocket, so the most likely casualty in such an explosion. Other pads and facilities are most likely far enough away that the only concern is debris from the explosion landing there.
The energy released in the first few seconds of a controlled launch is not remotely comparable to the energy released by an entire rocket blowing up simultaneously. Also, with an explosion, the entire rocket, along with parts of the strongback and other structures it's attached to, become shrapnel. Superheated water exhaust is a lot easier to protect against.
The tower features - the hold-down arms, etc - are painted with a sacrificial paint. The idea is that it's the paint that chars and burns, rather than the tower features.
Then there's the water deluge system.
In the video, the rocket and exhaust is clear of the tower, and the fires are out, within 30 seconds. Neither the sacrificial paint nor the water deluge are designed to handle long-duration fires from a RUD.
After a 2014 Antares rocket failure, the launchpad at Wallops Flight Facility took 1 year and $15 million to repair [1].
[1] http://www.space.com/31412-virginia-launchpad-private-rocket...
https://spaceflightnow.com/2015/10/06/workers-complete-15-mi...
There's a lot of testing, both in isolation and in integration with other components. The risk of the rocket exploding should actually reduce with each test. Note also that in this case the malfunction was most likely with the pad equipment, not the rocket, so not doing static fires would in this case probably just have meant that you'd have an explosion at launch time one day.
EDIT: The static fire is more of a test for launch procedures, apparently:
“The goal of the static fire is to provide a dress rehearsal for the launch team, culminating in a three second firing of all nine of the first stage Merlin 1D engines to validate the health of the rocket.” (https://www.nasaspaceflight.com/2016/09/falcon-9-explodes-am...)
Makes sense in that the rocket itself is tested quite a bit beforehand already.