I agree on this one. I also tell my students in the beginning that there is a potential risk in this sport.
Lets face it; moving towards the earth with 120 mph IS a hazard if you do not do anything at all.
The training, student program and equipment available these days have all minimized this risk, but you still need to do the right thing! If not, you are in danger of hurting yourself.
Back to the question on whether to show videos or not. To a student, I don't think so.
The same with trafic. You are taught how to drive, and told the dangers: If you don't brake at a certain point, you end up hurting yourself. If you go into the wrong side of the road, you end up killing yourself.
But you are not shown videos or pictures of people killed, even though the chances are present.
Information is better than scare tectics in my opinion. When it comes to tandem instructors, I find it to more informative than scaring. I did my TI rating, and the videos was used as a learning tool.
A final note: I have also experienced people who tend to proclaim that our sport is very safe, also to students. I find this wrong, since it helps to take away the respect and thereby the responsibility. People are still responsible for their own sake, and their own actions.
This brings me back to the traffic. When people loose too much respect, you see advertising and campains showing pictures and even movies of people that are hurt. This is a result of lack of respect.
If people won't listen, it's time to bring out the heavy stuff. Same situation in skydiving?? Yeah, if people don't listen, I would consider it. As a learning tool.
Be safe
It's all right to have butterflies in your stomach. Just get them to fly in formation.