You could at least be honest by saying "I don't like any risk at all". Otherwise you'd certainly have mentioned the alternate possibility to remove engineered modules on ship loss as well - you didn't. But now I have to be honest as well: I'm not sure if both are actually comparable and the ranks of SLF pilots are probably overrated. Has anyone ever made some systematic tests about the 'skill' of the different ranks of SLF pilots? Maybe we're all talking a lot of hot air here...
I can say with some certainty (no hard stats here, just observation) that elite npc pilots are actually pretty damned amazing, and the difference between them and harmless ones is massive. However, they're not much better than dangerous/deadly, so the huge gap between "high rank" and flat out elite SLF pilots isn't worth the grind. Its more like just having had an SLF pilot for a long time eventually gets them there, even if it wasn't your goal.
But yeah, I've had my elite pilot solo medium-large ships in conflict zones (pythons, clippers, etc.), and the lower ranking ones never stand a chance. I'd definitely say its worth the grind to rank up the pilots, I just think its EXTREMELY FAR from worth the risking of losing that grind when almost nothing else in the game presents that sort of risk. That's honestly why I'm so bummed about losing pilots; They're really useful, and are a satisfying reward for the combat rank grind you go through to get them. It hurts that they can just vanish all at once, and take 50ish hours of combat with them.