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In the Health Center of the Chao Kindergarten there's a bottle on the desk left to where the doctor is sitting, just a regular bottle of medicine right? Well no.....on closer inspection the label on the bottle has bones, the face of a sad Chao with X shaped eyes indicating its dead and the Japanese text on the label roughly translates to "No Chao"! Implying what is in the bottle is either poison or a euthanasia drug. So basically it appears Chao can be deliberately put down if one chooses to. Thankfully there's no actual in-game mechanic or option to do this but this does open up the dark possibility that Chao can become terminally ill or suffer horrific injuries where there's no choice but to have them put down. Or worse those that own Chao who simply get fed up with raising them.
Route 101 and Route 280 have you driving on a highway which is shared with other actual cars driving on it. Said highways also have also have gaps in the walls and huge holes with no barriers or guard rails! What exactly stopping the people in the other cars from accidentally falling to their deaths?!