What they're doing 'right', in general, is not having a lot of old people. It would be rather difficult for most developed countries to emulate _that_.
Morbid jokes aside, what I see here is an indicator that vulnerable people need to be protected (if they want), and the rest of the young healthy population needs to go on with life, and probably spend a little more time outside.
Ultimately it all comes back to the hospitals; if they're overloaded then suddenly things get a _lot_ worse, and people start dying of preventable non-covid things.
Yes, I enjoy morbid jokes.
Preventing the young who probably won't wind up in hospitals from doing whatever they want doesn't solve the problem of vulnerable people not obeying lockdowns and winding up in an ICU. And it doesn't seem to affect the transmission rate if 2 years of data are telling us anything useful. The vulnerable who choose not to protect themselves are going to wind up in an ICU whether the young healthy people are living their lives or not. So what's the solution then?