There seems to be some room for innovation here. The police are throwing these things blind. Evidence? Well, I refuse to believe anyone, no matter how debased, would
intentionally throw a flashbang into a baby's crib. What's needed is a flashbang that either won't go off if in close proximity to a living being (e.g. perhaps add an IR sensor) or a flashbang that is triggered remotely, so it can be thrown, spotted, and triggered only if in a desirable location.
Personally, I think building a flashbang that's harder to injure people with will simply result in increasingly idiotic behavior on the part of the police. The real solution is to use flashbangs less and with better training. That means regulations and oversight because the police apparently suck at policing themselves. However, the U.S. loves to solve problems with tech even when it's not the best solution, so there's money to be made here.