I too would prefer a higher safety factor. I don't run it beyond 150 psi and I have a pop-off valve set at 175 psi.
The low safety factor has to do with the fact that these pressure vessels are meant to be temporary (or so I think). More information is available
here. These pressure vessels are meant to be (but aren't necessarily*) DOT-39 certified, which means they are generally not heat treated. DOT-39 certified vessels also can't legally be transported in the US after being refilled (I haven't read of that being enforced).
An ideal solution would be a heat treated slightly thicker cylinder. I'm not aware of any company that makes such a product, but if they did and marketed it right I'm certain they'll make a mint.
Here's some more info for those interested:
http://www.catalinacylinders.com/lp.html
* The tank I have is NOT DOT-39 certified, but it was still designed to be a DOT-39 certified vessel. There's no legal problem with its transport, and as I mentioned, I use it at lower pressures than the recommended pressure, so it's very safe. The material is more brittle than it could be, but it's still aluminum.