@farmerman,
I think you make some good points from a geological perspective, but I believe attempting to consistently impose such rational methods, would fail on a political one. I believe the fundamentsal issues are that the relationship between risk, rationally examined, and human reactions to it are not either rational or easily explained. We tend to tolerate ubiquitous risks in which we have an element (often very limited) of choice, while rejecting others appreciably smaller that appear to be imposed on us. We also tend to overreract to some risks that involve things unseen and not easily understood. Finally we often have difficulty dealing with hazards that involve low probabilities but with horrific outcomes. Thus we have about 5.2 deaths every hour on American highways - 24/7/365 without a lot of discussion and tons of paper consumed in analyses of a reactor accicent at TMI that killed no one. In a similar way the world appears fixated on the Fukushima powerplant in Japan after an unusual natural disaster that wiped out numerous citiers, towns, roads, bridges, railroads & trains, power systems and agricultural lands on which a large population depends .... not to mention upwards of 15,000 people.
Are we prepared to relocate cities and/or other elemments of modern infrastructure away from geologically risky areas? I doubt it seriously. It is relatively easy to deal with risk and expectations in the world of science and engineering. However, everything we know about human history tells us that these are not principles that human beiongs will gladly accept in the governance of their lives.
All that said, I do believe that some improvementsd could be made. Just briefly considering a map of the Pacific plate boundaries, it seems evident that locating a powerplant on the west coast of northern Japan - just as acessible to the oceanic heat sink on the Sea of japan - would have been preferable to one on the Pacific coast immediately west of a very active seismic plate boundary. Even here though, we would have to consider the locations of the major population centers of Japan, from Tokyo to Osaka, which also occupy the same sessmically active region. I believe this illustrates the contradiction very well.