It's definitely a hazard of the game and something I am acutely aware of and always have at the top of my mind when I'm out caching. Generally, if a cache location looks sketchy to me or I have any reservations about it at all I just move on, the risks aren't worth the smiley to me. If it's a newer cache, I'll generally let others go out and find it first and have a look at the logs to see how it went for them, if things seems fine I may go out and give it a try.
One thing I always say is that just because a cache can "technically" or "legally" be placed in a location doesn't necessarily mean it should be placed. One hide I've had a lot of experience with are people hiding caches in a public park but either right against a neighbouring properties fence or extremely close to their back yard. Yes it's in a public spot, but if I'm that home owner and I'm suddenly seeing people lurking around my backyard of course I'm going to be alarmed and uncomfortable. There's also a very good chance that cache is not going to last long, just because people think they're being stealthy doesn't mean people aren't noticing them.
Another type I've found that seems sketchy to me are caches hidden on road allowances in front of someones home, I actually dislike these even more than the park ones. Generally people feel like they "own" that piece of land even if they don't. And even putting that aside, again if I start noticing people lurking around out front of my house I'm not going to be too happy about it.
TLDR: Hiders need to be more conscious of where they are hiding caches. Finders need to be aware of their surroundings and be willing to just walk away from the smiley.
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