When you measure only the costs of one side and only the benefits of the other, the conclusion is predetermined, and of no value.
How about you engage the question of whether the costs and benefits of our current policy outweigh the costs and benefits of a looser policy directly, instead of just tossing a rhetorical hand grenade into the debate ("look! mangled babies!") and running away? It would look something like this:
"The number of thalidomide birth defects estimates range from 10,000 to 20,000 according to Wikipedia. Given the rate of cancer death in this country, a net one year delay applied across all effective therapies compounded across many years almost certainly outweighs your one example. Excessively liberal medicine policy may kill and maim, but so does excessively conservative policy; it's not a pure win by any means. Are you so sure that our policy is really the best policy?"
This isn't a question you can actually determine the best answer to with a series of anecdotes. You have to actually do a statistical analysis. I have not done this statistical analysis, so all I can say is something like "I'd bet money we're being too conservative", or "My libertarian leanings lead me to say we should have a more liberal acceptance policy on the grounds of personal freedom", but just screaming about deformed babies with no other analysis like this is an emotional tactic that should be replaced with something better. Too many people's lives are on the line for this debate to be shut down with "won't someone please think of the babies?"