You can't ask those questions of people living in this environment. They only apply to people living under the long term expectations of living in the proposed environment.
The reason is that if a McDonald's employee is subject to getting sued for serving too hot of a cup of coffee, then that employee will take more personal responsibility in ensuring they don't allow anyone to come to such harm. They will stand up to bosses who dictate nonsensical rules or harmful acts.
As far as where the limits should be, that's what we have juries and charities for. Take away the limits on liability and society will quickly return to depending on them and their accuracy.