If they fail, you get a toasted PSU. If a battery OR-ing fails, it causes a fire.
I think you are oversimplifying the battery.
As you see, electronics can never be 100% reliable. This is why the li-ion industry has developed protection features on many levels (chemistry, construction, electrical). Just don't use random Alibaba cells, as you shouldn't anyway; get proper brands.
In a lab LCO cell, thermal runaway probably happens and flames emit when charged above 4.5V. A high-quality production cell is different.
Many proper cells even have overcharge conditions specified in the datasheet: such as many hours connected directly to a strong 12V supply. The cell of course dies and heats up a lot and may vent out some pressure, but no destructive fire should be seen.
I have tested a Sony 18650 myself connected to a 40V 5A supply for at least an hour. The cell didn't even vent; it become a thermostat heater, the integrated PTC has steep curve and large hysteresis and was controlling the cell on and off. The green plastic heat shrink wrapping around the cell didn't even melt or anything, it was a boring test.
This being said, you should never abuse li-ion cells. It's kind of risky. But it's already a somewhat managed risk. Battery electronics and BMS makers all take the risk and place some amount of trust on the cell level protections.
Use a plain old fuse. It's hugely reliable. If the diode fails and applies way more voltage than the open-circuit voltage of the cell is at that moment, a current high enough to blow the fuse will flow. What is your voltage? You could actually test applying 5V from a powerful lab supply to a fully charged cell and see how much current it takes. It will probably exceed your normal operating currents so that you can design in a fuse.
Designing the electronics to be super reliable is of course a good additional plus, to give one extra layer of protection. My view on the cell internal protection is that you should never design anything to rely on them, but they will 99% surely save the day if your design fails.
Proper protection only exists in quality cells, i.e., Sony, Panasonic, Sanyo, Samsung, LG and maybe a few others.
High power going into the cell is actually the most probable cause of thermal runaway and fire, not out-of-range voltage per se. And you can fuse against high currents. All proper cells are already fused, but I don't like the fact that it's self-resetting in a 18650, so add a normal fuse.