Everyone, I emailed one of our LV gurus back in Austin to share the feedback on the State Machine template, specifically that it should include a state for handling errors. See below for response:
As you can probably imagine, this was a very conscious decision that was made with the help of multiple internal architects. Ultimately, we sought to have at least one sample template that was relative simple, yet still demonstrated a recommended and usable architecture. As I'm sure you know, you can never make everyone happy, but we felt confident that this would still serve as a valid and recommended building block without making this overly complex.
The white paper for this particular sample project explores how you could go about implementing an error case: http://www.ni.com/white-paper/14120/en
The link referenced provides additional details on this specific template, and provides some guidance on adding an error state.
Great to see everyone yesterday. Reply to this post if you have any further feedback on the state machine template.