LastPass' entire business model was about protecting passwords, and passwords still got leaked. Most prople want security, not "ability to sue" which is not at all the same thing.
I don't want something just because "most people" want that thing.
And I disagree: I think everyone who has been harmed by another wants the ability to have their story heard by a judge and jury and be cured by the law. Maybe they would prefer to not be hurt in the first place, but as you point out with LastPass, they may not have that option.
What we can choose is the jurisdiction in which we trade, and I would recommend people spend less time navel-gazing and more time thinking about what they can be doing to make things better for themselves.