This topic is one of my pet travel peeves. I always stand well back from the carousel, and agree that the rational thing to do would be for everyone to do the same.

But I'm not so naive as to believe it'll ever happen, human nature being what it is. So when my bag approaches, I just elbow my way into the closest gap, and say "Excuse me" while pulling off my bag. Like someone here mentioned, most of the time people back off and give you space. Any who don't, I'll make half an attempt to maneuver around, but feel no guilt if I happen to bump them. As far as I'm concerned, any wounds they receive are self-inflicted.