So your question got me thinking. I really enjoy hbt because the community promotes personal safety first when it comes to brewing beer. But... Your question got me thinking about what function the E-Stop serves when it comes to that safety.
I've been an electrician for a long while now, and from my personal experience there is a difference between electrical safety and mechanical safety. When it comes to working with equipment that poses a mechanical threat to the user there is typically an E-Stop, as to where when there is a piece of equipment that does not pose a mechanical threat to the user there is not.
Now why is that? And further, I've been thinking about brewing, and what are the dangers involved with brewing to the person doing the brewing.
The E-Stop is typically located in a convenient place so that if a person becomes wrapped up in a piece of equipment, or something to that effect, the person can quickly turn off the thing by hitting the big "oh crap" button.
The difference with electrical safety is everything is intrinsically built in so if something goes wrong the system, it takes care of the problem with no interaction from a person.
I'm not going to sit here typing and say that the E-Stop provides a useless function for the average homebrewer, but I will pose the question. What mechanical means of failure is there that requires an E-Stop?
To directly answer your question, what you have seen is typical and would work. I don't think having an oh crap button on placed on the brew controller is the safest though.
Personally, in the event of a major brewing disaster where I wanted to shut everything down, I would want to be at least a few feet away from the whole operation. I would prefer to put a disconnect about 10 feet away, if not on the opposite wall, from my brewing rig. I do not see any reason why a person would get hung up on the equipment where in an event where a major shut down is required a person could not get away. And if liquid was being thrown around and on the ground I wouldn't want to be around it.
That is what I consider the safest system shut down. Get away from the stupid thing. Goto your means of electrical isolation placed about 10 feet away, and turn the silly thing off.
As far as electrical safety goes. As long as you follow the good advice that I have seen on this forum, have good breakers, GFCI breaker, fuses, proper wire size, and the like electrically in your brewing panel. An electrical event should be taken care of by your well thought out system. Not by an E-Stop button.