ftauss,
You're right on the money. Burning of anything is never acceptable.
However, when wires burn through the problem is not delicate electronics. That wire wasn't fat enough to withstand a direct short circuit -- it's an electrical problem, and not an electronic one.
So in addition to protecting your electronics (a relatively new thing), you also have to protect your electricals (very old things). It might surprise some people to learn that there's old technology mixed in with the new, and that in spite of common belief some old technology might not be up to the task. In order to be adequately safe, fuses and breakers, whether traditional or electronically-controlled, are necessary to protect both.
Thanks for sharing your story and approach.
M.H.M.
