Paintball tanks and the CO2 tanks used in the hobby are very different. CO2 tanks used for paintball are ment to be used by the idiots you speak of, and are more safe for general people.
The CO2 tanks we use for this hobby require inspections every 5 years or so. If you SCUBA dive, you know you must get your tank visually inspected every year (i think?). I saw my tank blow up one day when it was being filled. They break becasue of a flaw in the metal. They always fill SCUBA tanks in a vat of water, mainly to keep the tank cool, and to insure nobody is hurt should the tank break. Like Wizzard~Of~Ozz said, a tank breaking is very possible, a tank releasing shapnel like we think of it (gernade sytle) is proably uncommon if not impossible, the gas simply escapes.
As for the line you mentioned, yes it exists. It must be like that when it leaves the manufacturer. I assume its to make sure everything lines up properly, however I dont really know. When somthing goes wrong with pressurized gas, you simply do not have enough strenght to stop the pressure of the gas.