It's not a rebuke of grid-scale batteries, it's a rebuke of Tesla's implementation of it, or perhaps the design of the site if it wasn't planned out by Tesla engineers. One would expect that the batteries should be better isolated from each other to some degree so you don't get a chain reaction, and there to be automatic fire suppression (plain water, probably) on site and ready to go.

It's not clear from the article what exactly went wrong, but it looks like they probably lost at least one shipping-container-sized battery pack.

Should you have a Powerwall in your house? Maybe, maybe not. I would feel safer with a design based on less volatile cells, like LFP. No reason to use technology that's unnecessarily dangerous when there are reasonable alternatives.