You’re explaining scenarios where you incorrectly use this setup.

You can wire the switches so that if switched off it only kills power to that server and nothing else in the chain. You then basically have this: image

Yea if you rip out a cord that you shouldn’t you’re going to lose power, that is true of any power strip.

This has more components, so more things can fail, I will give you that, but that’s unlikely and for me at least, worth the trade off in making it modular.