You make a very good point: this “fear of Covid” is simply one of the many exaggerated, paralyzing fears that have taken over our lives.
I think a lot of it has to do with the rejection of God and the abandonment, even by the churches themselves, of the idea that human life is intentional, has a goal, and is valued and of value. That is, people now feel like random bits of inexplicably animated matter, with no particular purpose and of no greater value than any other matter, in a world with no stable structure and no significance. And the only thing that can protect them and let them scuttle through their days is ... the government, which has substituted itself for all other belief structures and morality.
And the government, which is nothing but people with a lust for power and control, seeking more power and control in order to overcome their own fears and enable them to feel in charge in this now pointless universe, does nothing but keep the fears going and growing.
And YOU make a very good point in your excellent post.