I wouldn't take it as being more likely to die but more about the approach of the customers.
When you go on a TIF you become a member of RAA (or other organization) and should be familiarized with the risks involved of taking up flying as a recreational activity.
And thus it is up to you if you want to accept that risk and still go or maybe stay on the ground (just like every one of us does when we go flying on our own).
When you take a joyflight (or however you want to name it) you're expecting it to be more like a tour on a bus, where you just buy a ticket and expect everything to be in top shape, and if it isn't you have every possible right to sue the person that is at fault. I don't want to talk for everyone, but if I was to pay for a joyflight I would expect there to be some sort of supervising agency (CASA) that would make sure that the plane is in good working order and so are the pilots.
Whereas when I went on my RAA TIF it was explained to me what freedoms RAA alows with regards to the planes, that the aircraft isn't certified to the same level as the commercial ones, that it is maintained by the owner, etc.
As to the time on controls, vs viewing the scenery - when I went on my TIF it was my first ever flight in a tirke, or any open cockpit aircraft (the smallest thing I flew before that was some 10 or 12 seater that flew between Cairns and Lockhart River) so wasn't important to me how exactly you control it, it was more about the sensation of flying (so in my book a person not focused on learning is just fine).
The same goes for tourists - in many countries flying isn't as popular or as visible (or should I say accessible) to general public as it is in Australia, so if anyone wants to try it out while on holidays, to continue doing it at home - why not. Or as it was in my case - it may be a person on a temporary visa that wants to fly in Australia with a RAA certificate.