We actually had a member on here this actually happened to. He used "hotshot" vintage campers and farm tractors. He developed a leak (but didn't catch it) and filled the oil with diesel and killed it. However, this is the only time I've ever heard of someone having a catastrophic failure like this. That being said, all my IDI's have had the mechanical pump. Yes there is a chance they could fail, but there is a chance that a lot of things could happen. The drain plug could fall out, you could run over something and poke a hole in he pan. You could blow a steer tire and take everything above it out (seen that happen too). Driving anything is a calculated risk, and the chance of a mechanical pump fail to the point of destroying an engine, vs the chance of an aftermarket electric leaving me on the side of the road and walking, I'll take my chances with the mechanical.
Par of this is based off of personal experience. In all the vehicles I've had, I've had issues with 4 fuel pumps total. One mechanical pump on our 85 E-150 carbed 302, and three electric pumps, and 85 Colony Park Wagon, EFI 302, 98 Sable Wagon, and a 2000 P71 Crown Vic. This is spread out over close to 40 vehicles total (Dad, My Son and Me) and only had 4 fail. We keep our vehicles for a long time. A 300,000 mile trade in mileage isn't unusual for us.......