This "chopped sine wave" has been a hugely debated topic on these forums. I have yet to see physical proof that it causes harm. As in, scientific proof. But dont worry! Its all going away soon as Lionel is shifting to DC (Have you bought a LionChief yet?).
Most newer transformers will have over current and short protections built in that are either self-resetting or quickly reset-able by pressing a button. These fuses also react quickly, which to me is a huge plus when dealing with children.
Most postwar like the ZW have zero fusing protections. They wind up with carpet burning "magic". As Dale Manquen suggested, an added fuse in the cord would mitigate some problems.
As far as unattended postwar transformers go, you would need to have some sort of active cooling if you are operating hours on end. Especially at 70% or higher loads. You can easily rig up some sort of fan to blow across it. Keep in mind little fingers!
For displays, I'd use a Z-4000. Although expensive, they can take a huge beating and can operate for hours due to active cooling. You can operate all manners of your layout on the two accessory outputs plus two lines with voltage and amp displays.
Z-1000's are okay. Personally I use one, but I've triggered the thermal limiter on the transformer brick running accessories and train. This was after three hours of operation.
We use a modern ZW with our LCCA modular kids group. The only problems with this power pack is the mechanical components are fragile and the four electrical outlets required to power this monster. The benefits to this unit is that it is modular. You can use one to four bricks to power this, making the cost of it variable.
CW-80's? AVOID!!!! Probably the most aggrivating transformer I've owned. Although rated at 5 amps output, you'll only get 4 of it as the electronics inside fight you. Good for kids running conventional, but bad for folks with large engines.