The German study also suggested up to 15% of people may already have it, so we can further reduce this number (an incremental 45-55% of the population getting infected) -- So, if we run some simple arithmetic, we'll see the number of fatalities will be approximately 60-70K.
This is in line with the number of fatalities in a difficult flu season. The difference is because COVID does not mutate (or has not yet), this will be a one-off, one-time, one-year issue. The flu kills 60,000 each and every year. The Swedes have it right.
We can mitigate this by isolating the vulnerable.
So yes, we are, in fact, overreacting.
[EDIT] I wonder if this is in fact in excess of deaths we'd see anyways. I'd imagine an 80.5 year old with 3 underlying medical conditions (average in Italy of the dead) isn't just as vulnerable to a bad flu as they are to COVID, so if COVID takes them, the flu won't.
[1] https://www.technologyreview.com/2020/04/09/999015/blood-tes...