I haven't attended a church service of any kind since W was in office Obama was halfway through his first term, (I have a sort of allergic reaction to any organized religion) but I seem to remember that some have gone to LED lit candles for some things.
I doubt very seriously the Catholic Church would stop using an actual candle in this case, since it's part of the history/tradition/ritual of the eucharist candle.
As for the design of the one shown, that's probably to comply with building/fire codes.
Indeed, further reading on this and I do see that the Counsel of Bishops or something requires it to be an actual candle. Shame they couldn't require their clergy to not rape children but I digress.
So, DHS agreed to let them have their candle and just required they put up a warning sign that an open flame is in use in the area and to keep oxygen away from it - an easy compromise that required nothing more than a letter. Here's the kicker - how was that sign not already there? Holy crap St Francis - I'm sure you have signage galore about pacemakers around the microwaves in the hospital. At least now, in the admittedly unlikely event something would happen, if a fire were to start from the Eucharist candle at least the Feds can say 'welp - we tried'.
I will say all the articles I found of churches and people in churches catching on fire from lit candles did get an eye-roll from me.