> accepting that overreacting is much more desirable

I wish that were true but it is not. It is entirely possible to take actions that make a bad situation worse. The consequences of an economic shutdown, for example, are unknown. The worst case of global depression and supply chain disruption is just as bad as the virus itself, if not more so. I do not know how one makes good decisions in a situation of highly uncertain knowledge and severe consequences.

I think we are in "less bad" territory, i.e. how do we balance multiple considerations such that while not leading to any outcome that could be considered "good", is at least not catastrophic. I don't envy those who have to make such decisions.