I got a new Sea and Sea strobe, the YS-90DX. The instruction book said to use only batteries in a list: alkaline, ni-cad, or lithium. But a pink addenda to the book said NiMH batteries were OK, with a lot of cautions about how to use them. I understood the YS-50 was the strobe that had a new battery cover retrofitted, due to 2 cases of exploding batteries (one in the US and one in Japan at a service center). So I think S&S were just being cautious, wait and see how the 90 behaves with flooded batteries and the new battery cover with a purge valve. Must have been OK, since they officially blessed the use of NiMH batteries in the new model.
Incidentally, the battery compartment is totally separate from the main electronics compartment, so a spark could not set off an explosion (at least for the YS-50 thorough 90, all have a similar body). There was simply a pressure build-up in the battery compartment, so when the door was removed it hit people in the face.
Even though Ni-cads have some advantages over NiMH, I think they will cease to be offered in new designs. Cadmium is considered toxic waste (like lead and mercury), and its routine use in new products is discouraged ). Anyway, the strobe vendors seem to be able to cope with possible overpressure due to flooding, it's a non-issue for new designs. If you have an old YS-50, better make sure the battery cover has the retrofitted purge valve, just in case.