Arney,
Your points on safety and potential problems are well stated and noted. However, we have used a kerosene heater in our home for the past 20+ years. We even sleep with it, while it runs at night. We have an older home, so drafts are ever present and we have both CO detectors and fire extinguishes ready and available. None of our CO detectors have ever activated. We keep one right by the heater, one near the bedrooms and one in the kitchen.
Regular maintenance, using the correct fuel and taking reasonable safety precautions should allow most homeowners to use one safely.
Pete