Using meanwells or buckpucks, yes they should be safe (someone correct me if I'm wrong).
More or less correct IME. If an LED fails open, the string just turns off. If it fails short, the driver regulates voltage down to the point where the current remains the same. The only real problem in a pure series arrangement should be if you get so many failures that the Vf of the string drops below the minimum output of the driver, but I really can't see that happening. And if it did, you'd already have lost most of your LEDs anyways.
Parallel and matrix arrangements, on the other hand, require much more careful thought about fool-proofing. In a "several series strings in parallel" arrangement, if one string has one LED fail open, the other strings get I/n extra current, where I is the overall current and n is the number of strings left. In a simple arrangement where you have two strings, this means that the still-running string gets TWICE it's nominal current, which can clearly be dangerous! Even if it doesn't insta-fry the LEDs, it's now running WAY above the temperature you designed it for. Hence fuses are important in these arrangements!
Mike, the only issue I see with your proposed design is that series-wired LEDs arrays aren't really ideal for that type of flexibility, and non-series arrays are tough(er) to design for the type of performance we're used to from series arrays.
Maybe at some point in the future when thermal requirements are way less, drive/control circuits are simpler and cheaper, and HP LEDs have become as cheap and easy to use as conventional LEDs are today, someone will implement a LEGO-style reef lighting array where you can just place LED bricks on a framework and everything will "just work" regardless of number, color, etc. of LEDs you add.