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I agree with you, but a general-purpose systems programming language needs to let _me_ make that determination. It can't abort on my behalf for my own good.
You can decide. You can use the standard library and deal with exceptions, or you can not use the standard library and deal with malloc failure yourself. The Rust standard library is opinionated in this regard, because it's rarely ever a good idea to try to recover from malloc failure for userland processes.
That said, with recover, which will probably be stabilized, you can recover from malloc problems, which are turned into panics. But I'm sure you know that this can be unreliable on Linux with the default overcommit turned on, and so forth. https://doc.rust-lang.org/std/panic/fn.recover.html
Note all of the debate on the linked issue as to whether recover is a good idea. Most of the Rust community is very hesitant to even allow catching panics at all; they certainly don't find the current situation "unusable".
> It's depressing that Java, of all things, does a better job in this respect than Rust.
I think that Java shouldn't throw exceptions on OOM. It should just abort the process.