Yeah, making it reliable enough not to need an escape system is the goal. One of the original concepts was that in a stage 1 failure outside black zones (also, Starship on paper does a great job minimizing the black zones due to re-entry design), stage 2 will light up and go for a powered landing. A stage "explosion" is usually very energetic but more burny-energetic than explosive-energetic, because the fuel can't efficiently mix, which should be within the tolerances of the upper stage.

Planes don't need escape systems, and hopefully Starship can get into at least 5 nines of reliability, preferably more. It's never going to be entirely safe (planes have an accident rate around 1 per million flights, not many of which are fatal), but there's no reason to think that we couldn't get to that safety level in time.