I have had several customers that wanted that switch disconnected. All I do is make a jumper wire and bypassed the switch. Happy customers. Just don't back over any children with your mower which has happen in our county, so if you have small children around I recommend don't bypass that switch.
My 2009 Craftsman has two positions in the ignition switch. One bypasses the reverse cutout. My MTD made Troy Bilt does not have this feature. With it, I just disconnected the switch. Well actually my brother-in-law who used to own the mower bypassed it. I installed new blades on my aunt's MTD and noticed it would die if the blades were engaged if I tried to go in reverse. So I unplugged it. She has no kids.
My question is should kids really be following you around while your mowing the yard? Shouldn't they be in the house or a different part of the yard playing? I have a 5 year old daughter but she typically avoids me when I start my mower because it's so loud. Otherwise she keeps her distance due to the noise it generates.
One issue we had at work was these engineers would be walking around the warehouse and would expect people on fork trucks to watch out for them. They thought as long as they were on the "green line" they were in some sort of safety zone. Some of these people would almost get hit then write up a safety incident.
In other words, if you are trying to cross a street where there is no crosswalk, you don't just jump out in the road and expect someone in a car to slam on their brakes a give you the right of way.
If someone who actually drove a fork truck was walking through the warehouse would typically avoid the area of activity and take a different route.
There are some safety devices that are worth while. Years ago I had a '79 Snapper that had only one safety switch which prevented the engine from starting if the blade was engaged. There was no switch under the seat. I did not know it but I had the mower in 5th gear and pull started it and it took off and I had to chase it down!