How do Class 4 lasers compare to other forms of light-based devices? They're all dangerous and you should show caution. Concentrated sunlight is an environment hazard, can cause cancer, skin-burns, blind you, etc. It's like a Class 4 laser, but it's not a laser. Likewise a high powered flashlight can do the same, but again, not a laser.
What makes the laser different? Well, there are properties of lasers that make them more dangerous than other forms of light (coherency, etc.). What is important is that for lasers, the power-rating/wavelength/spot-size is
known and therefore we can make good judgements on it might interact with the environment. If such a class system were made for flashlights, or sunlight, it would be the same thing, only those light sources usually aren't such a problem in their normal use. Lasers are a relatively exotic light source, so their properties are more precisely categorized for their purposes.
The major distinction between a Class 3b and Class 4 laser is that the Class 4 laser is an environment hazard, not just a eye hazard. You should treat anything Class 3b or above as permanent-damage dangerous to your eyes, but afford Class 4 lasers the additional precaution that they can be hazardous by just being in their vicinity during operation.
Eye damage due to reflections off non-specular sufaces, fires, skin damage due to indirect irradiation, etc. all constitute effects a Class 4 laser can produce. All this depends on wavelength, power density, etc. so what might be a Class 3b dangerous power level at one wavelength may be a Class 4 for another.
The "500mW" rating for Class 4 is just a catch-all power level so users don't need to work through calculations to determine what the "threshold" level is for a laser at a particular wavelength, spot size, etc. Note that laser Classes also depend on the environment they're in. A Class 3 or 4 laser can be treated as a Class 2 or Class 1 laser if it is properly sealed away so it is not a hazard. For example, you don't see laser projectors--with their 24x 1.5W 445nm lasers--rated as Class 4 laser devices. Rather they're only Class 4 when you put the laser diode in a device that can interact with other things in an unsafe manner.
So overall: with a Class 3b laser or above, you need eye protection. With Class 4 lasers, make sure your environment is made safe before using it, like make sure the beam doesn't hit something that'll burn or reflect and hurt your eyes that way. I've accidentally had a computer power cord in the beam of a 445nm laser and it started melting. That was
stupid of me, but it was hard to see where the laser beam was going with goggles on. Make sure everything is secure before you run your lasers, so your laser doesn't accidentally roll off and hit you in the eye like it did with
Xoul.