Well, you are definitely right that people should go on the top of rockets, not near the middle.
The Challenger explosion could have hypothetically been survivable though. In fact, the explosion itself was survived, likely by all of the crew. The crew cabin (http://upload.wikimedia.org/wikipedia/en/thumb/4/42/Challeng...) remained intact and possibly pressurized after vehicle breakup. The crew were almost certainly alive (and if the cabin remained pressurized, could have been concious as well) for nearly 3 minutes until it hit the ocean at over 200 miles per hour.
At some point during those 3 minutes, I don't know if the SR-71 ejection seats used for the first few Shuttle launches could have improved their chances of survival, but it seems at least somewhat possible that it could have. A parachute system for the crew cabin probably wouldn't work for the same reason the launch abort system on the proposed Ares was flawed (flying burning solid fuel going everywhere in the air is bad for parachutes)... nevertheless I think it is conceivable that you could build a Shuttle that would allow the crew to survive an accident like that.
But really, just stick the people on top. It makes way more sense. I know it is hard to compare the two accidents (though from what I understand, as far as solid fuel rocket failures go Challenger was pretty tame), but the contrast between Challenger and T-10-1 is something that lessons should be taken from.
The Challenger explosion could have hypothetically been survivable though. In fact, the explosion itself was survived, likely by all of the crew. The crew cabin (http://upload.wikimedia.org/wikipedia/en/thumb/4/42/Challeng...) remained intact and possibly pressurized after vehicle breakup. The crew were almost certainly alive (and if the cabin remained pressurized, could have been concious as well) for nearly 3 minutes until it hit the ocean at over 200 miles per hour.
At some point during those 3 minutes, I don't know if the SR-71 ejection seats used for the first few Shuttle launches could have improved their chances of survival, but it seems at least somewhat possible that it could have. A parachute system for the crew cabin probably wouldn't work for the same reason the launch abort system on the proposed Ares was flawed (flying burning solid fuel going everywhere in the air is bad for parachutes)... nevertheless I think it is conceivable that you could build a Shuttle that would allow the crew to survive an accident like that.
But really, just stick the people on top. It makes way more sense. I know it is hard to compare the two accidents (though from what I understand, as far as solid fuel rocket failures go Challenger was pretty tame), but the contrast between Challenger and T-10-1 is something that lessons should be taken from.