If we start to bring legalities, litigation, and lawyers into this discussion, we'll never get out of it. Ditto for greedy, profit driven, dive-shop owners demanding me to pump out as many divers as possible.
Yes, I suppose I can envision a scenario in which the conditions of an area were so inhospitible that the PADI standards would be insufficient to certify an entry-level diver. I suppose we would just head to the pool to do the confined water sessions, give him/her a referral, and send him/her off to finish up the course in a more conducive environment to open water training. I do not have to admit a student into my course if he/she refuses to accept that arrangement.
Should that same person show up at my shop a month later with c-card from X dive shop in the Bahamas wanting to dive in the same inhospitible conditions in the previous scenario, there would be absolutely no moral, ethical, or professional dilemma about it... they wouldn't be diving with me or with my shop.
As a final concession to the multi-pronged attack I'm getting from you

, I will admit that if such a student showed up in the scenario I've mentioned above and
demanded to be certified as an entry-level diver in those conditions, the PADI standards would be insufficient. However, as mentioned I'm not obligated by PADI to certify each and every diver who comes to me looking for an open water certification, and I would politely show them the door.
or
I do have the ability to contact PADI and ask for a waiver to deviate from the standards with a very clear and substantiated rationale. I could very well teach the same skill set in my open water course under the PADI banner that you teach in your course with full and complete support from the agency. I know, it's an extra step of seeking that leeway to fit the course into the local needs from my agency rather than just the agency giving me that leeway from the outset, but it can be done.
Nevertheless, if the conditions were that bad, I wouldn't really want to dive there either. I get whiney when the water drops below 26C.
Again, in a previous post I wrote that I don't wave any one source of information as the final authority of anything. Which leads me to my biggest critique of PADI... it often tries to be all things to all people in all situations. Perhaps it can be that agency for 75%, or 85%, or 99% of the situations, but there will always be that "what about this" scenario at which point that all-encompassing policy and procedure guide becomes insufficient and something else (your agency, perhaps) will have to step in and fill the gap. Wait... as I read what I have just written, that may come across as condescending or patronizing... Please please please don't misinterpret my words as that. I say that with the utmost respect and admiration for all the agencies and professionals out there who are promoting scuba and fulfilling a need where one clearly exists.
All the best.