I understand it's obviously an incredibly difficult decision because of
You are correct, for about 80% of people who get it, it will not be much more than a mild inconvenience and that's great.
However for about 10% of people it will be severe, needing hospitalization in "normal" circumstances but not being able to get it, and the other 10% will require ICU, of which about 30% of those will die. What we're seeing in Italy right now is their hospitals cannot handle that 10%, and is therefore deciding who lives and who dies. Doctors signed up for a life of trying to help people and cure the sick, they're not soldiers, they're not heads of military, is it really fair for them to be forced to choose who lives and who dies right now? Is that alone not enough to "drive the world mad" that these people were put into this position?
The reason people are seemingly "overreacting" is for the common good of that latter 10% of people. It's really great and wonderful for those people who can comfortably know they'll fall in the 80% and be fine, but for those people who then ignore the reality and severity of this and go on as if nothing is happening, they're the reason this is continuing to spread. The cases in the US are absolutely not 1200, the US is refusing to test people in an effort to keep numbers down and manage the economic impact. The numbers in the US is likely 10, 20, maybe 50 fold what we're hearing. It will only continue to spread as people are not taking it seriously enough.
The efforts companies are taking are to limit the strain on our healthcare system to prevent what is currently happening in Italy, which maybe by the numbers you think is insubstantial, but when you hear first hand accounts is heart wrenching and terrifying. Will this have an economic ripple effect which will be felt for a long time, yes absolutely. However throughout decades the world has dealt with downturns in economic growth and dealt with hard times. The responsible thing to do is put that on hold for the safety and livelihood of people across the globe, or else this will never be contained. A vaccine is at least a year away, by containing it now we can prevent catastrophe. If they were not able to contain it and it reaches infection numbers close to that of H1N1 you could be talking about deaths in the tens of millions.
The reason you'll be able to return to this thread in six months feeling high and mighty is because of the actions being taken now. They are a necessary step to trying to contain this.