Why not? I don't even understand how WE survive ship destruction, aside from the fact that it's a game. Maybe there's just enough time to launch an escape pod or two in some of the bigger ships, but the smaller ones should be exploding far too quickly.
The way I see it, they've been incredibly generous by giving us 'telepresence' in which NPCs don't die when you lose the fighter they're in. You've got to do some serious mental gymnastics to justify why we don't just fly ALL our ships with telepresence, now that cat's out of the bag, but hey, at least our NPCs survive when the fragile little fighters get one-shot by an NPC with a perfectly aimed railgun, right?
I can't deny, though, that anything that brings more immersion to the game can't be a bad thing, so bring on visible NPCs! Just please, stop making the game easier. If anything, it needs to be more dangerous than it is. Sometimes, I feel like I'm playing a "Playschool's My First Spaceship" game. Rated PG? More like C for Children. I still have the first NPC I ever paid for because it's just too easy not to lose a ship in this game, even playing in open with the threat of ganking "everywhere", which is easy to avoid if you know what you're doing. She's Elite now, and has been for over a year. I lost her once because of a bug, but because it was a bug, FDEV gave her back after I filed a ticket. They were pretty slick about it too: "SAR found your crew member's pod, safe and sound". I liked that email. So sometimes, they do survive ship destruction....
But I really don't see why anyone should survive ship destruction. The ships in Elite are too small to warrant easy escape. Unless I'm mistaken and they use automated 'ejection' systems to get people out, and the seats themselves become escape pods, which wouldn't be unreasonable or against Elite's rules, and I think I remember reading somewhere that's how it happens. Should be a chance for ejection failure, though. Fighter planes have ejection seats as well, but you aren't pulling the cord if you took rounds straight through the cockpit from another plane, or worse, a missile. Sometimes, you just don't get the opportunity. And I've always found it amusing how easy it is to smash the cockpit canopies on some ships, but hitting the pilot on the other side of that now broken canopy? Not happening. You can drain your entire payload into that hole and the pilot just sits there with a poopoo-eating grin on his face.