What happens if a lithium battery is in a checked bag?

Okay, so, checked bag lithium battery drama, right? Ugh, it's such a pain. I mean, who wants to dismantle their headphones or whatever just to fly? If the battery isn't one of those tiny little button cell things, it's like, pick your poison. Either carefully remove the battery (and hope you don't break anything in the process – I almost ripped the wires out of my portable charger once doing this!), keep it in its protective case, and bring it in your carry-on, or lug the whole device with you. Talk about inconvenient! Like, I'm trying to pack light for a weekend trip, and suddenly my carry-on is bursting at the seams because of my electric toothbrush? Seriously?! It’s ridiculous.

And don't even get me started on the worry. What if my luggage gets tossed around and my device gets smashed? I'm always slightly paranoid about that, even with carry-on, but at least then it's in my sight, you know? It’s just… frustrating. I vaguely remember reading somewhere that it's a fire hazard thing – something about lithium batteries potentially short-circuiting and catching fire in the cargo hold. Makes sense, I guess, but it still doesn't make it any less of a headache. Anyone else feel this way?