I think it all depends on the type of person you are. Some Westerners just cannot adjust to life in China. They'd rather pay the full penalty for breach of contract to get out as soon as possible, once they have actually experienced life in the country. Others are irresponsible and immature, only very few, I'll grant you, so much so that they will breach a contract despite their employer not having breached it first. Why shouldn't they have to pay the maximum penalty in that situation? Fair is fair, and they did, after all, sign the contract! As for illness, none of us knows when that will afflict us. If you are suddenly and unexpectedly taken seriously ill, you'll need to be in intensive care for some time until you can fly home. That will cost a great deal here!, and not be covered by any Chinese employers here, I venture to suggest. Of ciourse, you can take out your own private medical insurance, should you wish to do so. I'd expect a comprehensive policy to devour a great deal of your salary.
Anyways, we agree on the basic principle of having funds available to deal with unexpected crises that maty arise!