How to prevent Current Limiting Circuit failing short?
In your example, the current limit is set to turn on when the voltage on Rsens is enough to turn on Q2, or about 0.7 volts.  When shorted, your system does not shut down but continues to deliver this current into your short.  This means that your circuit has this current running through it, and has the full Vcc across it, so that the devices must dissipate a power in watts equal to Vcc times the current.  Even a small amount of power will blow transistors without heat sinks.
If you don't want to provide a big heat sink to allow your components to survive, and you don't want to limit current by switching, you might consider incorporating &quot;self protected&quot; mosfets into your analog current limit design in place of your standard discrete transistors.  These devices are self-protected to shut down from excessive temperature, overvoltage, and incorporate ESD protection and will either need to be toggled to re-start or start again only after the device has cooled down.
Good luck!