So, kids can survive playing around without paranoid adults standing over them and monitoring them 24/7? Truly shocking news indeed, it's not like this is exactly what has been happening for millenia, until the current paranoid approach to minuscule risks took over.
Lawsuits are the consequence of that. The concept is that if something happen, there must be somebody to blame, because they "should have done something to prevent it". And the lawsuits are in no way minuscule - they are actually huge and consist a serious drag on the economy, but the worst consequence, of course, is the behavior modification which emphasizes covering one's ass over all else.