I don't think anyone's suggested that the technical standards themselves that apply for CE marking are too lenient. In my experience they're far from it; a product designed to comply with them would typically need to have several, very specific and incredibly unfortunate faults in order to actually present a hazard.
Moreover, the evidence that they work is all around us; millions of pieces of mains powered equipment are sold every year, which must include thousands of sales to people who are extremely unlucky and/or extremely stupid, and yet it's still newsworthy when something actually does blow up or hurt someone.
Think about it quantitatively for a moment... that means electronic equipment is, in general, incredibly safe.
The issue at hand seems to be that equipment is on sale which simply doesn't comply with the regulations, and which is less safe than it should be as a result.
I would argue that, in that case, making the regulations more stringent - either in terms of the technical requirements themselves or the testing and paperwork regime that goes with them - is a waste of time, and likely to be counterproductive.
IMHO it's pointless to increase costs and overheads for legitimate manufacturers of safe equipment when people selling cheap crap will just carry on doing so anyway. Price the honest sellers out of the market, and what's left...?