Like all health issues, swall, it's arguable. And these days, it's pretty tough to argue the "don't worry about it" side with people educated by what the media tells them.
Lead oxide is a component of true lead glass, somewhere between 20 to 40%. Lead oxide is also the white pigment used in leaded paint, and you ought to know that anybody sanding on leaded paint surfaces these days must "suit up" and wear respirators, etc. Lead oxide is toxic, and will leach into acidic solutions in lead glass; wine stored in a leaded glass decanter reaches unsafe limits (well, relative to drinking water standards) in a day or less.
Lead is a cumulative poison in the human body, so avoiding exposure is fairly important. In my town, a lot of the schools have no drinking fountains right now, they are turned off because testing showed high lead levels (probably from the use of leaded brass in the plumbing/fixtures). Yes, the simple and smart answer is to let the faucet run for a few cupfuls before drinking, thus flushing the leachant-filled water down the drain...but we're talking public politics and that don't mix well with "smart".
Given the hassle over disposing of batteries, I'd guess there would be equivalent hassle over disposal of lead oxides, thus my comment regarding the swarf disposal.
There are non-lead versions of lead glass that give similar refractive index. It's where I'd look, if only to avoid the hassle.
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