Can understand kiter and member of public having an un-foreseen incident. This can happen in all walks of life.
Can not understand why people being taught by licensed instructor at licensed venue can come into the same category. Firstly the license should oblige the instruction to be within a clearly marked area large enough to allow for kites hitting the ground. The signs should be explicit and carry the council permit number. If there is not enough area for this to occur and members of the public to walk past on the beach/ area, it is not a suitable training area.
Regardless of what you feel your rights are to utilise public space for business activities you should be committed to meeting your obligations and basic risk assessment is one of these.
I think I heard that there is a 3 strikes and you are in jail policy with juvenile offenders in WA - where the same can be shown for a licensed franchise operating on public property replace jail with loss of license - not withstanding any possible criminal charges.
Allowing for inflation since I was born

- my 2Cents
PS I hope the cyclone brings some rain down south..
Cheers
AP