Well, that and the low-end bulk-scan services are using epson & nikon desktop scanners, and high-end pro services use drum scanners, but of course the drum scan is going to cost you 20-30 times more per scan. Of course, the OP didn't say what sort of quality he was after or how much he was willing to spend. (ScanCafe may use humans, but they say they're doing 20 scans per hour, which would still require significant automation.)
No. They post their work flow on their web site. They claim NOT to use automatic feeders because they sometimes "smash" a photo when they jam. So they say they hand feed the equipment. They use Nikon scanners. The photo shows a sea of workstations where maybe 100 peole each have a scanner and computer.
I've done this mayself and after you get good at it you can do one image every five minutes and that includes scanning and some small aamount of Photoshot work. The trick is to do the photoshop stuff on the last image while the current mag is scanning. It is mind numbing monkey work if you do this hours after hour at the five minute per image rate. After a few hours you will be hapy to pay ANYTHING not to have to do this. But if you are a poor Indian you might be very happy to have a nice job working indoors in an air conditioned building.
Like was said above by others what you pay for is is the hand correction and dust and scratch busting. Many US based services will scan cheap, they use automation and don't do the value added corrections in Photoshop. but also there are higher-end US based service who will do quite a bit of custom hand edits for you and use drum scanners but you pay a lot for this kind o professional service.
The compromise is the overseas based companies who can offer hand edited scans done without automation for low cost but they don't have fast turnaround.
Bottom line is there are many options and price levels and you have to balance cost, turn around time and quality.
As for safety, they are all pretty good. The weak link is the last mile, the guy in the delivery truck and they ALL use the same UPS or FedEx drivers