I see your point. I think the type of washer gives us another variable to consider as some, myself included, use the V3 O-rings contained within the aluminum ring. I also believe you are correct, the fiber washers will fail first and therefore fail to seal long before the banjo bolt breaks. I also agree that the quill doesn't need to be overly tight as pressure there is minimal, there has to be pressure there otherwise the oil would not be moving at all. The banjos using the V3 O-ring and aluminum ring could be done up quite tight I suspect as you would be squeezing the aluminum ring once the O-ring is compressed. But as you say the correct sized spanner and your hand as close as possible to the fitting and just snug it up. Interestingly enough that is where on the V3 the O-ring compresses and the banjo contacts the aluminum ring and I feel comfortable snugging things up to, so bonus.
But I would still be interested in knowing where they fail and which fails first.
But I would still be interested in knowing where they fail and which fails first.