OK, I see a lot of imprecise terminology being bandied about here.
Evil Monkey, what you suffered was a case split that originated in the case body, most likely at the mouth.
That does not result in a "blown up" gun. If you had been shooting brass you very likely never would have noticed it at all.
A "blown up" gun
A FAR more serious issue is a blow out at the case head. This is almost always caused by some sort of overpressure, such as this one...
That was one of my handloads that I chumped -- pure user error. I was working on a new press and managed to double charge a case with WW 231. 9.8 grains, instead of 4.9 grains, makes one HELL of a fireball when you pull the trigger.
Even with that kind of abuse, the gun, a Springfield Mil Spec 1911-A1, was undamaged. I replaced the (completely trashed) magazine, cleared the case, made sure that the extractor was still in one piece, and went on shooting.
A case head rupture is possibly the most serious failure of all. It can be caused by an overload or a bad case, but if the split goes through the case head, it can cause real problems, especially in a high powered rifle.
I've seen one true case head split, apparently caused by the failure of a factory new case, and it absolutely destroyed a Remington 700.
"Some people have dozens of steel casings on the ground that are completely blown out, yet the weapon continues to operate."
This statement really means nothing, because we don't know HOW they are "blown out."
If residual chamber pressure is high enough during the extraction cycle, case expansion can occur. This is seen in some blowback operated firearms.