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- He/Him
It takes a far smaller impact to endanger a space habitat than an entire world. The planet has gravity holding its atmosphere in place, and isn't reliant on pressure. Cosmic radiation would be mostly blocked out by the atmosphere of the habitat, but a large electromagnetic event like a solar flare could cause massive problems, exacerbated by the total lack of resources to fix anything without calling Earth. A single blight can't destroy all the food crops on Earth. It is relatively easy to ship disaster relief to neighbors on Earth. Rescuing a failing habitat is a much, much bigger cost.I don't really agree with your risk assessment, space is a very dull environment. This means there aren't a lot of surprises and once you've solved a problem in a reliable way, it will tend to remain that way.
So certainly, if you say built an O'Neill cylinder in a stupid and foolish way, it could be a major catastrophe risk. But it's not like you have to though, while I imagine early versions might, with refinement they'd probably eventually become very reliable. Like other major engineered systems that are well enough understood.
As such I'd argue long term space is probably the safer habitat, unlike Earth where the planet itself is constantly prone to high energy events causing catastrophes over large areas. From Hurricanes to flooding, or Earthquakes to Tsunamis. We've engineered ourselves to do better against them, but even now they are far from a fully solved problem.
Another factor would be if WW3 ever happened, then everyone being in one very small area (ie a planet) might be pretty dangerous. Being off world might have a higher survivability then being near ground zero of such a conflict.
As such I'm seeing at least two plausible benefits space has on Earth.
If a nuclear war destroys civilization on Earth, the habitats will most likely collapse next time they have a crop failure, hull breach, or disease outbreak. If not, they will probably fail when they can no longer repair the equipment necessary to control their orientation, or maintain their waste and water systems.
Essentially, these would be huge wastes of resource4s that would continuously demand more resources to keep their populations viable.