Is the INA219 suitable as current sensor for an electronic fuse design?

Are there any characteristics that make it unsuitable for this kind of application?

As a minimum it looks like I need to put some diodes across the shunt to protect the op-amp inputs during short circuit events.

Depends on supply voltage you're measuring.

There can be 26volt between the two INA219 inputs (across the shunt),
but they can't be outside -0.3volt and +26volt.

See the 'absolute max ratings' table in the datasheet.
Leo..