I can't speak for DSLR, but I can say why Puppy Linux runs as root without disaster. (Spent a couple of years writing utilities for them.)
Basically you design the system so that root has no special powers. Imagine if all of your storage was write-once, like a CD-R. What damage could root do? Almost none. Maybe there is a union file system for /usr and /home. Disregard all changes to /usr, when you reboot a fresh /usr is extracted from disk. Stuff like /home is incrementally saved. You can re-wind to any point in history. That is how Puppy (in CD-R mode) works.
About the only real threat that root poses is accidentally dd-ing over the OS boot partition. With some kernel patching you could simply hide the /dev node after the boot is done with it. Though that makes updating harder. Any threat can be neutralized, but the whole OS gets slightly more byzantine as a downside.
The root/user distinction places all your faith in octal permission bits. In some ways a properly designed run-as-root system is less risky, because the safeties are baked into the OS at a much deeper level. It is the difference between a dangerous machine having physical safety interlocks and paper-thin "for your safety" policies.