But that being said it may protect some players from bad beats, so I don't mind if sites implement this but I don't see it getting famous or that it will attract high stakes players to the site.
Personally I feel if a player is not comfortable playing at 'no limit' tables and worried about making poor decisions and going all in, maybe they should stick with 'limit texas hold'em' tables where Preflop and On-flop bets & raises are same as the big blind and on the turn and river size of bets and raises doubles.
Perhaps this is a common view among those who haven't played with insurance available. I was skeptical as well, until I played the games regularly, and came to learn that insurance changes the game in ways that I really like. I've found that I make more money, and more quickly, when I have insurance available. Note that insurance only becomes available when everyone is all-in ... so I've found I can get bigger pots more frequently, for one. Anyway, there are also benefits for the house, which can be redirected to attracting players ...
For example, a site that offers insurance may in turn be able to offer no rake. Would a no rake table not appeal to you? I suspect it would ...