I had a system binding fail many years ago, while skiing at a slow to moderate speed on a blue run at Killington. The binding just shattered; blew apart (on a 2-year-old ski). I came out of the ski, landed head first, and ended up with a nasty concussion that kept me out of work for a few days. The binding was in shards all over the hill. When I took the skis and pieces of broken binding into the shop when I got home, no one could ascertain what happened to make it blow apart like that. Ski was a K2 One Luv with Marker system binding.
Did you sue?
Actually, if it went down as described, the above incident and the OP are just the sort of cases that personal injury lawsuits were designed for. I would certainly have expected a rental binding (or a 2 year old one) to "not fail" under reasonable skiing conditions. Of course if you're pretending to be Candide Thonex, that's one thing. But even an advanced skier should be able to rip a blue run without binding failure. I'd be curious to know if the reason was human error or mechanical failure.
People like to bag on the US tort law system, but here in Europe you have almost no recourse in those situations. Even something like mass failure of breast implants took more than a decade to work through the French legal system. In the end, consumers benefit from better products and certifications, even if we like to grumble about added costs. If the courts do their part, frivolous lawsuits don't get very far.
In this case, yes, someone is likely to offer a settlement, mostly because it's a more efficient use of time and money. But on the face of it, this doesn't necessarily seem unreasonable. ...although leading the headline with "Texas couple" ...