Scary isn't it? Even scarier when it happens while you're riding the bike, but then again I wouldn't want to have a tire blow out inches from my face either.
Most of my flats have been slow leaks or kind of fast leaks; but I had one major blowout years ago (probably late 80s). I was riding sew-ups on my racing bike that I usually inflated to around 100-110psi. I knew the tires were nearing end of life, so I was probably running lower pressure. I remember thinking that the tread was getting worn pretty thin, so I'd better replace the rear tire ASAP. Well, I didn't replace it soon enough and the rear tire blew out while I was riding along at 15-20mph. It sounded like a gunshot and the back wheel bucked up into the air several inches (while I was in the saddle). Fortunately the glue held the blown tire on the rim and I was able to keep control and pull off to the side of the road. There was a dime-sized hole right in the tread. Before that experience I would sometimes ride tires until I could see the treads, but after the blowout I always replaced tires as soon as they looked really worn. I'd hate to experience that kind of blowout at high speed, or at any speed on the front wheel.
Sean