Humanity has been using Olive Oil for at least 1000 years. So that seems pretty safe to me.
It's kind of like saying sugar isn't bad by bringing up LD50 (13.5g/lb bodyweight). Immediately dying from overdose is probably the last thing people have in mind when discussing what foods are bad for us.
However, if the pan only has a couple onion slices, or there's more oil than onions, or the heat is way too high, the situation changes. You can also overheat high-smoke-point oils if you're not careful. Careful observation and regulation of environmental factors is necessary in all cases.