Other options like kites and wind turbines can work well but they all all significant upfront costs as well as ongoing maintenance issues. Spending that same money on a bigger boat gets you much more space, and of course a generator can give you redundancy or higher top speeds.
This is a net positive. The alternative is to roll back and forth with the waves. It’s much nicer with the sail up and ata bit of a heel.
Also, just to throw this in, one of the world cruising sailing couples which wrote for the magazines switched to a diesel powered boat as they aged and found that they spent less of fuel than they had on new sails. Sails are consumables if you care about performance.
Your point on the diesels still stands. Properly designed cats are unsinkable and don't readily capsize, but not weathering a storm is worth every penny invested in diesels. Besides one needs them in marinas anyway.
It's an interesting question, where does the wear come from. But sails are a very active part of the boat; every tack is going to drag the sail across the deck of the boat, rub against fittings. When a sail luffs, head-to-wind it's whipping around with the weight of the sheets (control lines), and then when you're taking the sail down it's getting folded (best case) or stuffed into a bag (worst case) [EDIT: some sail materials like being shoved in a bag!]. And of course even when a sail is just sitting there powering the boat it's under a tremendous amount of force, which stretches it over time.
Sails do fail, and yes often by ripping in half. I've personally never heard of a sail failing at the control points (e.g. the tack of a jib), probably because those areas are heavily reinforced.
Those areas where the sail needs to be strongest is where they are re-inforced doubling up the layers (and not just 'two', a corner can easily be 10 ply or more thick), on older boats further re-inforced with leather or heavier grades of fabric. The panels are carefully laid out so that the highest stress aligns with the warps. A large sail can be made up from many 10's of panels, which are joined in a variety of manners (glue (typically for very fast boats or as re-inforcement of stitching), stitching, sometimes ultrasonic welding for special applications). On the very high end there are even laminated custom laid out fibre pattern sails (for instance: a sandwich of Kevlar wire between two layers of bonded fabric or plastic).
At one time I worked for a competitor of North Sails, who by the way were pioneers in the digitization of sail manufacturing.
The cheapest ones last the longest but offer the worst performance.
If you're living on your boat 365 then I imagine avoiding severe weather becomes more important?
Most people living in boats actually live on ports and don't get very far from the coast most of the time.
For those that do not really stray far from the shore or who are willing to take more risk for more comfort, they use a slower boat.
Yes, but it makes less noise.