Our parents would just let us do our stuff. And although we were bruised all the time only one of us broke a bone once.
In the same time my friend with over-careful doctors as parents broke arms/legs roughly four times. And other kids with paranoid parents had similar problems.
Our parents thought us early on that we need to judge these risks ourselves, while these other kids would be extremely scared of harmless stuff at one point and overconfident in other more dangerous situations.
Also, when it comes to "our parents in the past would let us do anything and I came out ok" sounds a bit like survival bias to me. In Sweden, far fewer kids die today than in the 70s, so perhaps there's some merit to bicycle helmets, safer playgrounds and not letting your kids eats whole grapes unattended before the age of five or so etc.
Maybe the parents were not so much paranoid as reacting to their kids either doing dumber stuff or being more clumsy or having weaker bones.
How does that follow?
For something to be abandoned, there needs to be social agreement that it is a bad idea. This is meaningfully different than something being a bad idea.
human beings are often not rational