On the kiteboarding forum they talk a lot about "weak links", usually a piece of rope that's got a breaking strain of what you want. So if the leash stretches far enough to have enough energy to fling back, the weak link breaks.
www.seabreeze.com.au/forums/topic.asp?TOPIC_ID=16903&whichpage=3&SearchTerms=weak,link Looking at other sports:
Gliding has a weak link in the winch rope, so if too much force is applied the link breaks, not the line, stopping the line flinging back and breaking the airborne glider.
Safety harnesses for doing elevated work has a system where a piece of webbing tears, absorbing the energy.
I reckon the best system would be a reel, that at low speeds has low friction, at high speeds it locks up. Liquid Slip Differentials (LSD... erm no nothing to do with lysergic acid) have the same system.
You can do the same thing with a mixture of corn starch and water, mix it together and you'll notice that you can bend the spoon if you stir fast enough, stir slowly and it's like water.
You can do the same thing with strong magnets and a flywheel.
This would absorb the energy to make a completely safe system, no way it would fling back at you, provided that when the reel ran out of rope it let go.
Good luck with the project, let us know how it goes!