I only have a few hours of post hole digging on my B2910, but I've found that running the tractor just above idle speed is usually sufficient and I raise the auger every 9"-12" I drill to make sure it doesn't screw itself into the ground to the point it can't be lifted out. The bit will swing fairly "wildly" when engaged if it is not in contact with the ground. I don't engage the auger until the point of the bit is resting on the ground. This is also necessary if you want your hole drilled anywhere near the correct location.
I think a good portion of the safety concerns exist because there is usually more than a single person involved in putting up a fence, so that bystanders may be nearby when drilling. If they should get too close to the rotating parts, bad things will happen. Roto-tillers and 3pt. snowblowers are also very dangerous implements, but it's unlikely someone will be in harms way when these are being used because the tractor is usually in motion and people will give it a wide berth. With the post hole auger, the tractor is parked and people might be tempted to get closer for a better view. Heck, even the operator might be tempted to dismount from the tractor to get a better view of the drilling operation and raise and lower the auger boom from behind the tractor, instead of from the seat.
Also, keep in mind that safety devices do not prevent accidents from occurring, they only decrease the probability of an accident, and that's usually only when common sense is applied. (In most cases, if common sense were present you wouldn't need the safety devices in the first place.)
Seatbelts, anti-lock brakes and airbags are all great safety features found on our cars, but people have still been seriously hurt or killed even with these devices present. The safety shield around my post hole auger PTO shaft is "free", but there is still a possibility of loose clothing or hair being snagged by the ends near the universal joints.
Much like the circular saw example someone else mentioned, use it with respect and common sense and you should be OK. Get the slightest bit careless and the results could be lethal.
Stay safe,
Rick