I think the response is both too much and too little, just depends on to what degree your view is individualistic or communal.
From an individualistic perspective, this is very unlikely to hurt you in any significant way if you are under 70 years old and healthy. By that measure, we are inflicting grievous economic damage for a big nothingburger (god I have come to hate that term).
From a communal perspective, this shows the possibility of a shockingly high mortality rate among at risk populations. To the extent that low risk populations gathering (at work, school, stadiums, restaurants, etc) creates high transmission that makes it almost impossible to keep out of high risk populations (and to the extent that we care about those high risk populations), we are taking this all way too lightly.
I agree both are true. Expanding on the second part, it's super disappointing that many are taking this so lightly that they are not even doing the most basic things. I went out once yesterday and saw two different groups of 7+ people meet each other and greet with handshakes and hugs all around. The fact that people can't even be bothered to make simple changes to their behavior on the chance that it could protect the most at risk portions of the populations is really discouraging. I don't know how you handle messaging to balance between not overacting to the point that it unnecessarily cripples the economy but at the same time getting people to take this seriously enough that everyone at least does the basic things that cost them nothing but could have a massive impact on how bad this gets.