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I completely understand that people don't like to lose money. Its disheartening to put money in an investment today and get a statement showing a loss six months down the road. I'm not for a second advocating that investors should be running around buying penny stocks or anything like that, but taking all of your risk off the table isn't the way to go either IMO.
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Do you not agree that people have different tolerances for risks at different ages, though? If I lose half of my retirement savings while I'm in my 30s, I'm not overly concerned about it because I have plenty of working years left in my career to make it back. My grandmother, on the other hand, doesn't have that luxury. She needs to know that her investments are safe and will provide her with a steady, predictable income for the remainder of her life.