Yes new studies using the antibody test (rather than the PCR test which gives lots of false positives) are starting to show the mortality rate is actually more like 0.3% instead of 3-4%.

So the large number of false positives was one reason things got out of hand. And another reason was the media, as you mentioned. And then also reactionary governments and companies looking to cover their ass, and make sure they're not liable for anything.

The slow-spreading nature of the virus gave everyone time to over-react. And the "100th monkey effect" made organizations and governments close simply because they were copying everyone else. There was a lot of social pressure. Everyone was trying to be safe rather than sorry, but there was definitely a media-led exaggeration of the situation which intensified the reaction from the people, the government, and companies.

So I blame the media, but I also blame the over-use of PCR tests which are known to give lots of false positives. But this point was glossed over so badly, and the tests applied only to dying people, that everyone thought the mortality rate was 10x what it actually was.