IMO the tradeoff is freedoms vs. protections. People can agree to exchange certain freedoms for protections, and codify this exchange into law.

For example many countries have mandated seatbelt laws. In this case the freedom to not wear a seatbelt is exchanged for health and safety. Someone could claim this is done out of fear, and that's not completely untrue. And as you allude, fear can be totally rational and backed by data, thus fear vs. freedom is not an unreasonable exchange.