I was very sheltered as a child and today I try not to be so with my daughter, because I know the consequences of growing up being sheltered. I really push for her to be independent, to deal with her own problems, and to go through the pain/sadness without much caressing when something bad happens (say, she hurts herself while playing and it's not really a major injury that requires going to the hospital).
I possibly do it, and this is simply - not letting him go free on the street while we cross it, in the parking, and always making sure I can see him while he's playing at the playground, and at the same time I so much want to tell him my favourite story how me and my one year older cousin walked 25 kilometers from one city to another just to get my plastic truck (we were 5-6 years old).
I'm afraid, because I've succumbed to the peer pressure, media, and let myself just go this route that everyone around takes, or at least shows that it takes.
I want him to roam free, but then if something happens, even if it's not a big deal, I'll feel bad, and I won't be strong enough to reply to all questions/answers/attitude from everyone else.
He really has much more freedom back in Bulgaria where he goes every summer...
I imagine in most rural settings the community attitude would be the opposite of what you mentioned.
I am not unhappy to see my toddler have accidents only likely to result in a graze/scratch/bump because those teach lessons without risk. But, at that age at least, other things (climbing recklessly, head first over things, etc) I'm less comfortable with.
Perhaps over time, parents have become ever more aware of just how many low-chance dangers there are.