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Steamed pilot?  Hmm?  I don't know about that.  This is the way every
car I know of heats the cabin.  Haven't heard of any cooked drivers or
passengers.  Did have a heater core crack in my Dodge truck, though. 
The stench of antifreeze is what finally drove me to tear the dash
completely apart to replace it, not the heat.  The worst case is that
the cabin may get extremely humid.  My advice would be to place the core
so that it is accessible for replacement, and ignore the wild hysteria. 
If you're still worried about that failure mode, put a valve on the hot
side as the line comes into the cabin.

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This has been my experience, strong odor of antifreeze and windows fogging over is all I remember ever happening. However, the heater hoses usually don't run through the interior of a vehicle but remain on the engine side of the firewall and in today’s cars they don't penetrate the firewall and even the heater core is in a duct on the engine side.

Was wondering if anyone else had heard of the incident with the air racer.

Oil lines would be smaller and easier to run through the cabin but was concerned about an exchanger, would like to use an evap. core (cheap and on hand) but I believe Rusty had one to fail and lost oil and had engine to seize on him.

Wendell