Personal liability would be a nasty thing to deal with after your business failed. And you may not get to start another company with a huge personal debt.
Uh, no. You're thinking of BAPCPA, which sucked, but was a far cry from what you're suggesting. Chapter 7 (straight liquidation) is harder but still very possible, especially if you've just been slapped with a multimillion-dollar verdict, while Chapter 13 (individual reorg) came out mostly intact, and 13 does result in discharges (but there are limits to the amount of debt you can have and qualify for 13).
It's so easy to incorporate it should always be done. I assume when someone starts working with that kind of money and has knowledgeable lawyers advising them that they'll be told to do that.