I would be ok with that if it didn't mean that every time I got screwed I lose a team member which in turn panics the next guy who will then turn and shoot someone in the back. A single bad roll of the dice and your entire mission can get screwed. Later on, one bad dice roll and you lose the game.
I have the same problem, although I'm not playing ironman and am not afraid to reload if I get a tantrum spiral. I think the problem is that according to the screen hints, critically wounded soldiers permanently lose Will, and some of my best guys have been gravely injured several times. It seems unavoidable no matter how safe I play it. The "+Will per level" OTS bonus is rather expensive, forcing you early on to choose between more sats, or a few Will boosts to soldiers that are probably already halfway levelled up. I imagine its the second wave of soldiers that will be the strongest ones since they get the Will bonuses through their whole career.
Combat Drugs seems a pointless way to boost Will, since you can't really predict ahead of time that a panic turn is coming up, and when a panic turn happens its too late to add the Will. The +defense smoke I think is the way to prevent those rare hits, but frankly there are not remotely enough smoke grenades to cover the hundreds of times your guys are going to be under fire.
Generally, I just try to make sure its my Assaults that I leave in exposed positions, and that they always get the beefiest armor and the beefiest under-vest. I go all-defensive perks on them, they're just there to soak up the unavoidable damage. My set up is two Assaults, each with a Support buddy always within a single move to top them back up. One Heavy and Sniper to round it out.