Even though you are right, misusing the term in situations where your one life is either in danger, or where you make extremely dumb decisions even though you know better... is the joke and makes the term so charming for me.
For me it basically translates into : "I am about to do this dumb thing which I already know is dumb, but living my life to the fullest leads me right here"
YOLO just got too popular and jumped the shark. The original thought is still very valid; life is so very super short and you only get one. Make the best of it. That doesn't mean you should take unnecessary or extreme risks. But you definitely should get over yourself and do karaoke and dance and skinny dip.
Let life pass with or without traumatic experience? The YOLO lesson skip too easy the role of luck having in every single jump, and lucky is what it is, one winner and a lot of losers left behind.
Unpopular is actually accept to be born under the losers lines, everyone wants to feel winners without shame.
Thats the lie as my opinion, about the learn and grow. Trauma don't always make you grow but actually most of trauma take you back, eats your years, lock you inside mentals institutes for example. Even the basic reward can strike you down, its all about luck, lose or win.