I don't think there is anything intrinsically unsafe
about the switch itself, which is rated for line
voltage and likely UL approved. The idiocy of the
IMSAI design is that the switch is connected via PC
traces to solder pads at the top edge of the board
where the wiring to the power supply attaches -- live
line voltage exposed at a location that just invites
contact while one is otherwise careful to avoid the
power-supply internals. I've seen people put a few
strips of electrician's tape over the pads to insulate
them, though a fold of fishpaper and hot-glue might be
less likely to fall off with age (??). Another piece
of bad design is the bare metal fuse clip that is so
close to the edge of the power supply PC board that I
would be concerned about the possibility of contact
with the case cover, e.g., if the case was
sufficiently deformed. Another fishpaper might be a
good idea there.
--Bill