The deaths will probably have been from crushing.
Here the force is the weight of the peloton unit, rather than the motor pulling you into a fixed width gap.
Shitty diagram to show what I mean: https://imgur.com/a/TstPxtb
The belt on the peloton doesn’t go inside the device, it runs fully on the outside all the way around and underneath.
None of this excuses Peloton. This is a uniquely dangerous treadmill due to its large diameter rollers and deck height.
All it needs is a guard under the deck and a better safety key mechanism.
Thousands of non functional products can ruin the company while this event could be explained with “Don’t allow children around running and dangerous equipment.” You wouldn’t allow small children around a running lawn mower or car and a treadmill requires the same level of respect.
The peloton in the video has no protection to prevent dragging something underneath it, and just kept going as it dragged the kid under it. The motor stalled, locking the kid, then started dragging again as soon as the kid managed to almost get free.
Remember that on a treadmill you are running in place. You don't actually have any forward momentum, so you don't have to worry about slamming into the console at 8 mph. It's not like if you were running outdoors and someone suddenly put an obstacle a few feet in front of you.
You should just have maybe a little stumble, at most requiring that you use the rails to steady yourself.
Here's a video of someone running when power was cut to their gym [1]. The power goes out at 1:07.
It's probably worth actually testing this at various speeds working up to your normal maximum speed. I've done that (although I just do fast walks, not running) because one of the reasons I might be on the treadmill instead of outside is bad weather, which is sometimes accompanied by power failures, and I wanted to know if I should avoid the treadmill during those times.
Additionally, a sensor on the motor could detect a sudden increase in power required to keep the belt spinning at a particular speed (such as something getting under it). This would trigger an emergency stop and possibly an audible alarm.