The dojo's / gyms I have trained in take this same view of safety very seriously. From the instructors' point of view, it keeps their insurance costs reasonable. From the students' point of view, it keeps us alive, healthy and coming back to keep paying class fees (not to mention spreading the good word to attract more students). To answer the OP, I took my guro's recommendation of using wrestling pads. Even the thinnest, cheapest padding works very well. As Guro Pat O'Malley mentioned, the feedback from a hit connecting is great input for learning. Those hits just need to sting/be felt, they don't need to break skin & bone.
Pads on for training drills, off for fighting. I need my partners/students to come back so I have someone to hit. The problem is when pads become a crutch. Is the pad being used as a 'protection' for the guy wearing it, or so the other guy can practice hitting the target? The answer: Quality in drilling and every couple of months, take the off an fight.
