Li-ion custom protection circuit module (PCM) design and de-rating
This isn't really an answer, but cells (dependent on both type and particular construction) obviously have a maximum C-rating for charge and discharge which you should always stay below.

But if you know that your application isn't going to need to draw anywhere near the maximum current that the battery can safely provide, then you could limit things to be more in line with what your circuit runs at since anything above that means something is wrong (like maybe a short, but not so bad a short your battery is pushed beyond its limits).

If you are going to use limits similar to fusing then maybe double your expected operating current. You don't want the PCM kicking in for peaky, but normal, operating currents.

PCMs also probably have some type of filtering going on which would help filter out high but short peaks since it's really heat that kills the battery, not current.