During the tsunami for example..there are statistics saying that about 45% of the tourists affected did not even have a regular "home insurance",they couldent pay their bills for the aftermath..transports,hospital bills etc..ffs..Western people are so damn spoild..they obviously think the gouvernments will fix it all..?!
Westerners are quiet well off but I think the underlying reason for some of them not having insurance is the mindset that it will never happen to me, or things like that only ever happen to other people. It's really just ignorance, yes the chances of having to make a claim are slim but people seem to forget how easily things can go bad and how expensive it can be when it does happen.
On the matter of thinking the Government will fix everything, the government can offer advice, contact family back home, assist in processing paperwork but I think everyone understands that the Government does not pay any bills, that's what travel insurance is all about.
For what it's worth, I'm an Aussie and I never travel without insurance, it's a small price to pay for piece of mind.