Hospitals have been routinely overloaded by seasonal flu before COVID-19. We just kind of dealt with it and didn't take drastic measures.
https://time.com/5107984/hospitals-handling-burden-flu-patie...
https://time.com/5107984/hospitals-handling-burden-flu-patie...
Those two aren't really comparable, though the former really should have clued us in to how big a risk the latter was.
In other words, I doubt your latter scenario at the more extreme end of overloading was widely the case (in the first world), perhaps you have some analysis backing it up?