Earlier quoted context omitted.
It seems to me this is one of those situations where the programmer mindset does not properly interface with the lawyer mindset. In programming, you have true and false, and generally things fall into one or the other category with no human input. In law, you have concepts like "reasonable", and a whole lot of human input, by design. So my expectation would be that if software vendors were to be held responsible for…
On the contrary, it's the legal perspective that's most worrying. If every software bug carries the potential for liability, there's no way your legal department will let you have a widely-visible bug tracker, or easily report bugs at all. It'd be much like copyright violations are treated today, where there's a formal process to raise the issue and everyone's specifically trained not to discuss them openly.
Change the phrase "software bug" to "engineering error". Then consider the liabilities involved with the manufacture of any real-world-might-kill-someone product. The lawyer's view starts to make a helluva lot more sense.