I wouldn't say that people have "no problem" with it; plenty of people are terrified of flying. Jet fuel and hydrogen are worlds apart in danger and ease of handling, as jet fuel stays where you put it and will extinguish your cigarette. Finally, a jet engine is hardly an open flame; it's very well-contained for a dozen different reasons, not least to keep its own thrust from blowing the flame out.

I agree with your point about the hydrogen fear trigger, but your strawman caricature of the heavier-than-air aircraft industry weakens your argument.