Well, you've edited your reply a couple times, so it's a moving target, but:

> * Panic and shut it all down. This prevents any reporting mechanism like a core dump. You cannot attach a normal debugger to the kernel.

No one is really advocating that. Clearly you need to be able to write code that fails at a smaller granularity than the whole kernel. See my comment upthread about what I mean by that: dynamic errors fail smaller granularity tasks and handlers deal with tasks failing due to safety checks going bad.