There is no scenarios where the collapse of the medical system is a viable outcome for policymakers that is also compatible with a functioning economy. A collapse of the medical system means non-covid fatalities also increase. Heart attacks, car accidents and childbirth all become mortality contributors. The most likely outcome of a medical system collapse would be martial law, mass graves, economic collapse and potential collapse of essential systems like food distribution.
The idea that policymakers were primarily constrained by the thought of grandpa dying a few years early and weighing it against the grandkids social isolation needs to die.