> I would like to know why grid operators turn portions off instead of installing devices to mitigate the fire risk when a fault occurs.
The stuff you're mentioning is - at least from a quick Google, I'll admit that - only certified in Australia. Even here in Germany, introducing that onto the grid would take years for certifications. Bureaucracy moves slowly.
Then, you'd need to upgrade a lot of transmission lines including the regional distribution grid (i.e. < 100 kV), a single unprotected line in a danger-prone area is enough to start a deadly fire. And there are a looooot of power lines that haven't had an inspection for decades - the hook that caused the 2018 fire was almost a century old [1]. And so, instead of inspecting, maintaining and upgrading the many thousand km's of national and regional lines, shutting them down during peak fire condition times is cheaper.
IMHO it only makes sense to install REFCL devices as part of a general overhaul of an entire transmission grid area.
[1] https://www.wsj.com/articles/this-old-metal-hook-could-deter...