The solutions to concurrency pretty much all involve staying out that quadrant as much as possible. Immutability isn't the only solution. Another is to confine all variables to one thread. Erlang, for instance, superficially uses immutability to achieve this, but a deeper reason it achieves it is that there is simply no way for a "thread" (what Erlang calls "process") to modify a variable that another thread can see; this is sufficient. (See what Elixir does.) Rust implements a super-rich system of variable ownership that allows you to implement the constraint that no variable can be unexpectedly just modified by an arbitrary thread in a far richer fashion than just hard-locking all memory to a particular owner thread. This is also sufficient. I program a lot in Go, and while it lacks compiler support for forcing you to stay out of that quadrant, my code runs at high concurrency rates precisely because I've learned how to stay out of there, and my code looks very Erlang-ish when you look at the concurrency patterns in play.
An unfortunate overreaction, I agree.
Does everything have to become dumb to make it safe?
I don’t think trying to avoid shared mutable state is dumb. It’s deliberately choosing a safer default, just like not allowing all references to be null or not accepting the string "123" where an integer like 123 is needed.
Sometimes it can be useful to have shared mutable state, or to make a reference nullable, or to accept different types of data and quietly reinterpret them the same way internally. But these are inherently more dangerous styles of programming — they create opportunities for mistakes that are otherwise systematically prevented — so it seems reasonable to encourage the safer alternatives unless there is a good reason not to use them, and to make the more dangerous choices the ones you have to make explicitly.