> Adding that feature in will makes people think that it’s safe to run generators indoors because the sensor will cut off when it’s not. Except inevitably the sensor will fail or the co will end up moving to a basement and killing someone

This is a good point. One that people in decision-making capacities should not ignore. Ultimately, it's a matter of which decision will result in fewer deaths and less severe injuries.

Without knowing all the factors, we can't know which side of this would be optimal. That said, I tend to think these safety features will be a net positive.