Wasn't one of the constant talking points in the war over the Init System That Shall Not Be Named that Linux needs to scale from embedded to big iron?
If you want to turn off overcommit and have the system power off when it runs out of memory, the kernel allows that.
Whatever knob they add will certainly be configurable, and ubuntu desktop can configure it one way while ubuntu server configures it the other, if it turns out people would prefer that.
In practice, people running servers seem to want oom killers to kick in before the server barfs. One example of this is facebook's oomd [1]. I assure you, they're running that on their servers, not their web-browser-machines.
One thing I do want to try is sand boxing the browser using UML (which I’ve been using a lot of lately.) This way since it gets its own kernel I can totally limit everything.
a) killing the malfunctioning process (this is often hard)
b) killing the biggest process
c) kernel panic / locking up
d) killing more or less random processes until memory pressure is relieved
Thrashing in a distributed environment is probably going to end up with partially failed health checks and all the nastiness that comes with flapping. If you're lucky, failing health checks will reduce load and memory usage, and get you back to a happy place; if you're realistic, you probably got into the thrashing situation because of a burst of latency or traffic that resulted in slower processing for a bit and the resulting retries killed the system.
The last thing you want during operations (whatever your actual job description) is a server that's essentially not serving, not remotely available for troubleshooting and not crashing.
These metrics also need not necessarily by definition take longer to notice gray failures. You can detect a gray failure transfer rate without having to wait 30 seconds. Another example, but a second or two is enough to notice disk latency issues (and retry to a faster disk), which is probably in the same granularity as the window for detecting "Connection refused".