Some people willingly take on dangerous jobs (or stunts in the case of the X Prize) knowing full well they could be hurt or killed. By accepting the risk, they're taking individual responsibility for the possible negative outcome.

What should we do about it? Should we let people make their own choices, even if those choices involve risk? Or should we expand the massive "Nanny State" where the government tries to dictate everything to everyone, all in the name of "safety?"

If someone wants to go BASE jumping, a very dangerous activity that's many times more dangerous than skydiving and as they endanger no one else, what should be done about it? Anyone who willingly accepts a ride on one of those X-Prize rockets stands a fairly good chance of dying. So long as they take no one else with them, that's their choice no matter how questionable it might be.

Or maybe you'd prefer that the government step in and mandate escape systems, parachutes, air bags, etc. Do keep in mind that despite all of the government mandates and the work of thousands of employees, the Challenger still exploded. Those on board, with the possible exception of one, knew it was dangerous to be riding on millions of pounds of propellants and hideously complex systems built by the lowest bidder on government contracts.