Ummm... where did you read that HLJ will replace lost SAL orders? As far as I remember, in their shipping FAQ it's stated that they are not held responsible for lost items if you don't select to use EMS as your shipping method.
Regarding rainbow ten, I am in Mexico, which has quite the reputation when it comes to lost items, and I haven't had to deal with any lost packages from rainbow ten yet, however, that's well beyond their control.
Packaging wise, they are discreet, and they also pack everything nicely, trying to use the space as best as possible without compromising the safety of your items. Yes, they use newspaper as padding, but hey, it's japanese newspapers! You don't get those often here in the Americas. I think of it as an added value, haha.