I'm with you here - especially including the observation that it was the non-free market force ("It couldn’t be patented") that skewed the choice in favor of the inferior, poisonous option.
Side note, besides its anti-knock properties, the lead also had protective effect on the valves - with early metallurgy, the high temperature gasses wore out valves, in particular the exhaust ones; lead partly ameliorated that. It is a concern with older vehicles (aircraft and cars) and they may require leaded gasoline for that particular reason - or at least replacement of relevant engine parts.