From what I can see, I think that emotionally people are overreacting to COVID-19. I'd like to take a minute and try to put matters into perspective as best I can.
First and foremost, panic doesn't help. What does help is decisive right action. Decisive right action begets calm confidence; and calm confidence begets decisive right action.
What constitutes decisive right action with regard to COVID-19? The biggest threat this virus presents is to the health care system as a whole. Because of the relatively high speed it can be transmitted, unchecked COVID-19 transmission has the capacity to overwhelm any health care system in the world. Therefore, the actions people can take to reduce the speed of transmission are the most decisive and right actions available to the general public. Washing hands with soap and water often. Failing to touch your face unless your hands are clean is important because there are so many ports of entry into the body on your face. Reducing social contact specifically by avoiding large gatherings and long-distance traveling is useful. The ordinary healthy practices are useful: Eat nutritious food, drink lots of fluids, get your sleep, keep up your personal hygiene. Of course do all that. And for goodness sake, if you develop symptoms, self-isolate!
Complete social withdrawal is probably not such a good idea, for a couple of easy reasons to spot. First, people are gregarious. We rely on each other to remain mentally balanced. When we isolate, we become vulnerable to a variety of psychological conditions such as anxiety and depression. These in turn can affect reasoning. We start to hoard. Hoarding affects the availability of goods necessary for everyone to live in healthy ways. If our hoarding disrupts others' self-care, the situation as a whole becomes less safe. It becomes more difficult to cooperate with one another to slow the spread of the virus. Socializing in small gatherings probably protects ones sense of proportion. This is important to mental and therefore behavioral balance.
Slowing the spread of COVID-19 is absolutely essential. Viruses that are transmitted through droplets and close contact during a time when the person carrying them has not yet developed symptoms tend to spread throughout a population quickly. Whether they spread quickly or slowly, viruses that spread by droplets and close contact will ultimately get everywhere. If we can slow the spread, then people won't become symptomatic so close to simultaneously as to overwhelm the health care system so there's no room for all those needing treatment. Instead, the health care system will not be swamped, it will just be busy. People needing treatment will be able to get treatment. Outcomes will be better that way.
I don't have all the answers; no one does. But if we keep our wits about us, take the suggested measures without becoming so fearful we start hoarding or otherwise interfering with others' ability to also take those measures, we will do a far better job of getting through this pandemic.